EIC Monthly News October 2015 by Energy Industries Council

EIC Monthly News October 2015

ÂŠ 2003-2015 Shutterstock, Inc

www.the-eic.com

The EIC Chief Executive

The Chief Executive

The EIC was once again the single largest exhibitor at Offshore Europe last month, with 42 companies in our member pavilion and 110 members exhibiting across the show. Despite a slowdown in the industry, almost 56,000 delegates from 104 countries attended the event, giving it the second best attendance figures in its history. Offshore Europe is always a great event, not only for showcasing product and capability but also for discussing the industry and the challenging times we are currently working through. Given the current landscape, it was refreshing to hear the five key messages delivered by Bernard Looney, COO of production for BP: 1) We are in a growth industry and all forecasts suggest that the demand for energy will continue to rise. BP believes that this demand will be one third higher by 2035, driven by population growth and increasing prosperity. 2) Despite the environment, the industry in the North Sea continues to invest billions of dollars in bringing new barrels to market.

Contents

3) We have a highly skilled, experienced and engaged workforce. Universities are also helping to sustain graduate development by offering oil and gas related courses.

The Chief Executive

Sector Analysis

4) The North Sea has extensive infrastructure in place with some 15-20 billion barrels potentially waiting to be discovered, recovered, developed and produced.

EIC Monitor

Member News

5) We hold a clear licence to operate with strong and progressive relationships between industry, government and the regulator. Put into context, these are five powerful reasons to be optimistic. At the same time, we need to recognise that there will be some real difficulties ahead. We have overcome periods of low oil prices before, and with each cycle has come a unique set of circumstances. But the challenge has always been fundamentally the same and our industry has always found a way forward by learning from each other, innovating and investing in the future. While at Offshore Europe, I also observed a number of companies that have been or are considering exploring opportunities in the offshore wind and nuclear sectors, in a bid to diversify. The capabilities for supplying to the offshore wind industry already exist and are transferable, and with over 5GW of capacity now installed, the UK is recognised as the global leader in offshore wind. This was further highlighted at an EIC showcase event â&#x20AC;&#x201C; UK Offshore Wind, also held in September, where E.ON, Siemens, Cofley Fabricom and Babcock presented on their product and service requirements. Taking this subject forward, we are returning to Manchester Central on 24-25 November 2015. Our EIC Connect Energy event aims to highlight potentially lucrative global opportunities and identify UK capability on major power, nuclear and renewable energy projects around the world. We will be holding a series of informative presentations by the major energy sector operating companies and their contractors. Finally, if you would like further information on EIC Connect or need any help in getting the most out of EICDataStream, please contact Harriet Fray at: membership@the-eic.com Claire Miller, Chief Executive www.the-eic.com

@TheEICEnergy

Events Diary

Overseas Events

UK News

National Events

Middle East News

Training Services

Asia Pacific News

North America News

South America News

Designed and published by EIC 89 Albert Embankment London SE1 7TP Tel +44 (0)20 7091 8600 Fax +44 (0)20 7091 8601 Email info@the-eic.com Web www.the-eic.com

Follow @TheEICEnergy

Join the EIC LinkedIn Group

October 2015

EIC Sector Analysis

Sector Analysis

UKCS and Norway briefing

UKCS Analysis of contracting activity in the UKCS shows that since Q3 of 2013 we have seen a decline in the award of major contracts on field developments on the UKCS. Contracting activity slowed despite the US$100 barrel+ environment due in no small part to the increase in contractor costs in what is an expensive place to do business. With the new low oil price looking as though it is here to stay for some time, will opportunities for the supply chain continue to decline in the region? Since the drop in the price of oil the number of contracts awarded has been at a low in the first two quarters of 2015. The expectation is that the number of awards in the near future will remain low throughout the remainder of the calendar year, EPC contracts are expected to be awarded within the next 12 months. Maersk Oil has approved internally the HPHT Culzean project and is now awaiting approval from joint venture partners BP and JX Nippon. Government approval and a final investment decision is expected to take place before the end of 2015 with EPC contracts to be formally awarded thereafter. As in most regions of the world, developments have been slowed down by the operator community and new development options considered with a view to reducing costs and making projects commercially viable. One such example is Chevron’s Rosebank development where it is understood that the operator has simplified the topsides processing of the FPSO, reduced the complexity of the turret and mooring system while subsurface work has seen an improved reservoir management plan which has resulted in the number of development wells needed to be drilled being cut while also improving the expected recovery rates by up to 20%. While times are undoubtedly difficult for all involved in the upstream oil and gas sector in the current climate, opportunities still exist for the supply chain, and it is worth noting that no new field development has been cancelled in the UKCS to date. New opportunities are also emerging. The decommissioning market is set to grow in the coming years and will provide the UK supply chain with the opportunity to establish itself as a world leader by using the UKCS as a learning ground before exporting this knowledge globally. The growing offshore wind sector could also represent a new market for the supply chain, utilising and transferring the skills developed in the UKCS oil and gas industry.

A total of nine contracts were made in the quarter across five significant developments, Wintershall’s Maria oil field, and Statoil’s Gina Krog oil and gas field, Oseburg Future Development, Njord A and the Johan Sverdrup development. The most notable of the awards was made on the latter development. Samsung Heavy Industries was awarded a contract valued at US$888 million to undertake the fabrication for topsides of riser-utility and processing platforms, while KBR in a joint venture with Kvaerner picked up the EPC contract for the utility and living quarters platform. Norway currently has 20 new field development and enhanced recovery projects under construction which will see approximately US$70 billion of capital expenditure. While this corresponds to work being undertaken now, the future opportunities for the supply chain in Norway looks less promising in the new low oil environment. In July no significant contracts were awarded. The expectation would be that the number of contracts awarded will remain low in the near future as operators delay field developments. One such example saw Premier Oil postpone the submission of a field development plan on the Vette oil field in January 2015. It is understood that the favoured development option would have been through an FPSO, however in July Premier Oil announced that it was looking at alternative development options and as such it is assumed that the tendering process for the EPC work has now been cancelled. The new plan for development is not expected to be submitted until January 2016 at the earliest. Other projects have been cancelled due to the low oil price including the Tommemliten Alpha gas and condensate field operated by ConocoPhillips where it had been anticipated that FEED work would be undertaken during 2015. The US$2 billion+ development would have represented significant opportunities for the supply chain. However, with new discoveries being made and existing discoveries yet to be developed, should contracting costs continue to drop and the price of oil stabilise the outlook for the supply chain longer term in Norway looks promising. Neil Golding, Head of Oil & Gas Tel +44 (0)20 7091 8613 Email neil.golding@the-eic.com

Norway Since the first quarter of 2013 we have seen the number of major contracts awarded in Norway drop substantially, with the number of awards being made during the period between Q4 2013 and Q1 2015 being particularly low. During Q2 of 2015 the number of contracts awarded increased. On what projects were these awards made and will we now see an upturn in activity in the market? www.the-eic.com

@TheEICEnergy

Øyvind Hagen - Statoil ASA

October 2015

EIC Monitor

Upstream contracting levels provide optimism in the face of declining oil and gas activity

The latest EIC Monitor report shows a continuing decline in the levels of contracting activity across the global midstream and downstream sectors in Q2 2015 as the industry continues to battle with low oil prices. Overall figures show the number of major contract awards made since the last quarter have contracted by 17%, however a rise of 20% in the number of upstream contract awards is a source of cautious optimism for the industry.

offloading (FPSO) compression modules. The contracts are for four modules for the P-66 FPSO, earmarked for deployment on the Lulu Sul field development; four modules for the P-68 FPSO (Lulu Extremo Sul/Sul de Lula field development); four modules for the P-69 FPSO (Lulu Oeste field development); eight modules for the P-70 and P-71 FPSOs (Berbigilo, Sururu and Atapu West oil fields); and four modules for the P-67 FPSO (Lulu Norte field development).

The number of major contract awards across the global oil and gas industry has continued to decline during the last quarter (Q2: Apr-Jun 2015), dropping to 100 contract awards, a 17% decrease compared to 120 in Q1 2015, and a 39% decrease from 165 contract awards in Q2 2014.

A further two contracts have been awarded to another Asian firm, China Offshore Oil Engineering Company (COOEC) for the fabrication of equipment and integration on the Lulu Norte and Berbigilo, Sururu and Atapu West oil fields. The remaining contract is for EPC work on the BT-PN-8 Gavião Branco onshore gas field in Maranhão state, operated by Parnaiba Gas Natural, where a consortium of Fluor, Construcap CCPS Engenharia e Comércio and CFPS Engenharia e Projetos have been appointed to carry out the EPC work for a 300 MMcf/d gas gathering system and 40km pipeline.

Upstream contracting activity in Q2 2015

In Q2 2015, a total of 49 major contracts; Engineering Procurement & Construction (EPC), Front End Engineering Design (FEED) and Subsea/Subsea, Umbilicals, Risers & Flowlines (SURF), were awarded across 37 upstream developments, rising 20% from 41 awards in Q1 2015, but decreasing 71% from 69 contract awards in Q2 2014. A total of 28 EPC contracts, 9 FEED contracts and 12 Subsea/SURF contracts were awarded.

Despite the widely reported impacts of the oil price on activity in the North Sea, five EPC contracts have been awarded on developments offshore Norway as operators press ahead with current development projects. As Statoil ramps up to construction of the Johan Sverdrup infrastructure in the Utsira High region, a consortium between KBR and Kvaerner has been awarded a contract to supply the topsides for the utility and living quarters platform. In turn, the partners have sub-contracted the EPC work for the accommodation module to Norwegian firm Apply Leirvik. Further north, Statoil has also moved ahead with its Gina Krog project, located 30km north-west of Sleipner, awarding Sembcorp Marine a contract for a floating, storage and offloading (FSO) vessel conversion. German operator Wintershall has contracted Aibel to carry out modification work on the Heidrun platform as part of its Maria field development. In order to develop the Maria oil field, Wintershall has submitted plans to build two subsea templates to be tied back to the existing Kristin, Heidrun and Asgard B platforms. Norwegian firm Aibel secured a further contract from Statoil for the disengagement of the embattled Njord A platform, which is being brought back to shore for assessments regarding its future operation.

EPC Activity Brazil and Norway have been hotspots of activity in Q2 2015, together accounting for 13 EPC contracts across 10 different upstream developments. In Brazil, a total of eight EPC contracts have been awarded, five of which have been awarded to a joint venture between Asian firms BJC Heavy Industries and COSCO Shipyard Group to build a total of 24 floating, production, storage & www.the-eic.com

@TheEICEnergy

October 2015

EIC Monitor Also in the North Sea, one EPC contract was awarded in the UK in the last quarter to Wood Group PSN, who has been awarded a five-year EPC contract for EnQuest’s Thistle & Deveron oil field redevelopment.

riser package on Chevon’s Captain Field Enhanced Oil Recovery project. This pilot project is aimed at demonstrating the use of polymer chemical injection technology for enhanced oil recovery.

Elsewhere, there has been a significant level of activity in Oman where four EPC contracts were awarded, three for work on BP’s Khazzan & Makarem gas fields and one for state-run PDO’s Yibal Khuff Sudair Integrated Enhanced Oil Recovery project. As part of its Khazzan & Makarem tight gas development, BP appointed Galfar Engineering & Contracting to build a gas gathering system; Oman Construction Company to build a 60km 36” gas export pipeline; and Gulf Petrochemical Services & Trading to build a 68km 12” condensate export pipeline in the last quarter. Nearby in Yibal, PDO has awarded Petrofac a four and a half year EPCm contract for work at its Yibal Khuff Sudair Integrated Enhanced Oil Recovery project.

Subsea/SURF Activity The US has been a hotspot of activity in Q2 2015, accounting for three SURF/Subsea contracts in the deepwater Mississippi Canyon area of the Gulf of Mexico. Technip secured two subsea engineering, fabrication and installation contracts, one for two rigid flowlines on BP’s Thunder Horse South Expansion, and one for riser, umbilicals, flowline, pipeline end terminations, manifold foundation and jumpers for Chevron’s Blind Faith 2 subsea development. Also, LLOG Exploration has awarded McDermott International a contract to supply a flowline and catenary riser for its subsea tieback at the Otis oil field. McDermott also secured a contract to engineer and install flexible lines for Queiroz Galvão’s Block BS-4 – Atlanta Heavy Oil Field Hub (Oliva Oil Field Tie Back), located in the Santos Basin offshore Brazil, while GE Oil & Gas was awarded the contract to supply the 28km of flexible lines.

FEED Activity In Q2 2015, almost half of the upstream FEED contracts awarded were for projects in the Asia Pacific region. Wood Group Kenny secured two contracts in the region, one to carry out engineering and design services for top tensioned risers on the Ca Rong Do oil and gas field, offshore Vietnam, and the other to support operator Kebabangan Petroleum Operating Company with studies of subsea heating options for a 30km gas pipeline, which is part of the Kebabangan Cluster project located offshore Sabah, Malaysia.

Also in the last quarter, Statoil awarded further contracts on its Maria oil field development, appointing Subsea 7 to install subsea flowlines and facilities, and DeepOcean to carry out riser installation at the Kristin and Heidrun platforms. Meanwhile, on the UKCS, Dana Petroleum has awarded Technip a brownfield subsea fabrication and installation contract on the Triton FPSO, which produces oil from the Bittern, Clapham, Pict, Saxon, Guillemot and North West fields.

In neighbouring Indonesia, KrisEnergy has appointed Synergy Engineering to provide FEED services for its Lengo gas discovery, part of the Bulu PSC, in East Java, Indonesia. The studies will define the proposed wellhead platform, export pipeline and onshore receiving facility. In China, state-run operator CNOOC awarded a FEED contract to a consortium of COOEC and Technip for two tension leg platforms (TLPs) to be installed at its Liuhua 11-1 and Liuhua 16-2 oil fields in the South China Sea.

Midstream contracting activity in Q2 2015

In Q2 2015, a total of 25 major contracts (EPC, FEED and PreFEED) were awarded across 25 midstream developments, decreasing 44% from 45 awards in Q1 2015, and 52% from 52 contract awards in Q2 2014. A total of 14 EPC contracts, 9 FEED and 2 Pre-FEED contracts were awarded.

Technip also secured a major contract from Jurong Shipyard to carry out detailed engineering and procurement services for the conversion of an FPSO vessel, which will deployed on Petrobras’ Libra gas field, offshore Brazil. In Western Europe, Aibel continued to rack up its share of North Sea contracts, securing further work to provide FEED services for brownfield topsides modifications on Statoil’s Oseberg Future Development project. Also in the North Sea, main FEED contractor Amec Foster Wheeler awarded a contract to Jee to provide design and engineering services for a jacket rigid polymer injection www.the-eic.com

@TheEICEnergy

October 2015

EIC Monitor EPC Activity The US dominated midstream EPC activity this quarter, accounting for four such contracts in Q2 2015, three of which were for shale gas related projects in Texas. In Chambers County, Lone Star, a joint venture company between Energy Transfer Partners and Regency Energy Partners, has appointed S&B Engineers and Constructors as EPC contractors for its Mont Belvieu NGL Frac IV gas plant. The plant will process shale gas primarily from the Eagle Ford and Barnett shales, and the Permian and Delaware basins. Enterprise Products Partners also plans to build its refrigerated ethane export terminal and pipeline in the Mont Belvieu area, and has awarded Houstonbased firm Willbros the EPC contract for the pipeline.

In neighbouring Texas, operator Freeport LNG Development has awarded CH-IV International a contract to conduct detailed engineering and design studies for Train 4 of its Freeport LNG liquefaction facility on Quintana Island, while CB&I will carry out FEED work for NextDecade’s Rio Grande LNG export plant in Brownsville. In Canada, a further two contracts have been awarded, one for the Trans Mountain pipeline extension in Western Canada, and one for the Bear Head LNG export terminal in Nova Scotia. On the former project, Universal Pegasus International has been contracted to carry out pipeline engineering services for Kinder Morgan’s planned expansion of the pipeline from Edmonton, Alberta to Burnaby, British Columbia, while on the latter project, operator Bear Head LNG Corporation has appointed KBR as FEED contractor.

Also focused on the Delaware Basin is Vaquero Midstream’s Southern Delaware Basin gas gathering and processing project in Pecos County. UOP Russell has been awarded a contract to build a 200 MMcf/d cryogenic unit for the project.

KBR also secured a FEED contract to provide integrated topsides and hull engineering design services for Lloyds Energy’s 2.5 mtpa Eurasian FLNG Project.

In Q2 2015, there was also significant activity in Russia, where Novatek awarded Qingdao McDermott Wuchuan Offshore Engineering Company a module fabrication contract for its 16.5 mtpa Yamal LNG plant, located on the Yamal Peninsula in West Siberia. Elsewhere in the country, Gazprom appointed Hyundai Heavy Industries as EPC contractor for its Kaliningrad Floating LNG (FLNG) terminal, located near the Polish border.

Pre-FEED Activity In Q2 2015, Amec Foster Wheeler continued its strong quarter, securing a further contract to carry out Pre-FEED studies for the Government of East Timor’s proposed Beaco LNG liquefaction plant (Sunrise LNG) on the southern coast of the island. Meanwhile, in UAE, Abu Dhabi Gas Processing Company (GASCO) has awarded Tebodin Middle East a contract to carry out Pre-FEED work for its Sales Gas Network Compressor Station.

Anardarko’s plans to build a LNG hub on the Mozambican coast have also moved forward, with the US-based operator awarding the EPC contract to build two 6 mtpa LNG trains, LNG storage tanks, condensate storage, a multi-berth marine jetty and associated utilities and infrastructure to a joint venture between CB&I, Chiyoda and Saipem.

Downstream contracting activity in Q2 2015

In Q2 2015, a total of 26 major contracts (EPC, FEED and PMC) were awarded across 22 downstream developments, decreasing nearly 24% from 34 awards in Q1 2015, and 41% from 44 contract awards in Q1 2014. A total of 16 EPC contracts, 5 FEED contracts and 5 PMC contracts were awarded.

FEED Activity North America was a hotspot of midstream FEED activity last quarter as the US and Canada continued to press ahead with LNG liquefaction for the export of shale gas. In the US, four contracts have been awarded on liquefied natural gas (LNG) projects in the gulf states of Louisiana and Texas. On the Louisiana coastline, Venture Global has appointed Tecnicas Reunidas to carry out engineering and design studies for the liquefaction and export facility of its Calcasieu Pass LNG export plant on the Calcasieu Ship Canal, south of Lake Charles. In the same county, operator Sempra Energy has appointed Amec Foster Wheeler as owner’s engineer for its Cameron LNG liquefaction plant expansion (Trains 4 and 5) in Hackberry. www.the-eic.com

@TheEICEnergy

October 2015

EIC Monitor

EPC Activity The US and Russia have also been hotspots of downstream activity in Q2 2015, together accounting for six EPC contracts. In the US, operator Fulcrum BioEnergy awarded Spanish firm Abengoa a contract to build its planned Sierra biofuels plant in Storey County, Nevada, which will convert municipal solid waste into transportation fuels. Further east in Louisiana, Toyo Engineering has been appointed to build Shintech’s 500,000 tpa Plaquemine ethylene plant, located in Iberville Parish.

FEED Activity The US and Russia continue to dominate downstream activity, accounting for three of the five FEED contracts awarded in Q2 2015. In Louisiana, Shintech awarded a further contract on its Plaquemine ethylene plant, appointing CB&I to provide ethylene technology, basic engineering and cracker heater supply, in addition to construction services. In neighbouring Texas, LyondellBasell Industries has appointed Amec Foster Wheeler as FEED contractor for its Corpus Christi ethylene cracker expansion on the state’s southern coast.

In St John the Baptist Parish, EuroChem is also taking advantage of the shale boom to build the St John fertiliser plant, which will use cheap natural gas to produce ammonia and urea. The Russian operator has chosen a site for the plant and has signed a MoU with Maire Tecnimont to act as EPC contractor for this and four other fertiliser plants across Russia and the US. One of these is the 2,700 tpd Kingisepp ammonia and urea plant in the western Leningrad Oblast, Russia, for which the EPC contract was signed in June.

In Russia, Togliattiazot Corporation has awarded KBR a contract to carry out design and engineering studies for the revamp of its seven Togliatti fertiliser units in Togliatti. PMC Activity The majority of PMC activity in the last quarter has been in the Middle East and Caspian region, where four out of the five contracts have been awarded. In Oman, ORPIC has awarded MAN Diesel & Turbo a contract to overhaul and revamp the residue fluid catalytic cracking unit on its Sohar refinery improvement project, while in Saudi Arabia, Jacobs Engineering will provide PMC services for all phases of InoChem’s Soda Ash (Sodium Carbonate) and Calcium Chloride plant in Yanbu Industrial City.

Also in Russia, Maire Tecnimont subsidiary, Tecnimont, has been awarded a contract to provide EPCm services for Gazprom’s combined oil refinery unit, which forms part of its wider modernisation project of the Moscow oil refinery. Further south in Krasnodar Territory, NefteGazIndustriya’s Afipsky refinery is also undergoing modernisation work, with the operator appointing CB&I to carry out the EPC work for multiple new process units and a 2.5 mtpa hydrocracker.

There has been further refinery improvement activity in Iraq, where South Refineries Company appointed a joint venture between Technip and Unico a contract to project manage the EPC work, commissioning, start-up and warranty management phase for its Basra oil refinery rehabilitation and expansion in the south of the country.

There has also been a significant level of activity in the Asia Pacific region where Jacobs Engineering has been awarded two EPC contracts, one for Huntsman’s Jurong Island polyetheramines plant expansion, and one for Celanese’s Jurong Island vinyl acetate ethylene unit, both in Singapore.

Finally, in Azerbaijan, Neste Jacobs Oy has been appointed to manage SOCAR’s Symgayit urea plant project, north of capital Baku. EICDataStream Data is sourced from the EICDataStream online project database, which tracks nearly 10,000 projects proposed or under development in the global energy industry.

In Vietnam, PetroVietnam Fertilizer and Chemicals Corporation has awarded two contracts for work at its Phu My site in Ba Ria – Vung Tau. A consortium of PetroVietnam Technical Services Company (PTSC) and Technip has secured the EPC work for the Phu My ammonia unit revamp, while a PTSC and ThyssenKrupp joint venture has been awarded an EPC contract for the Phu My NPK fertiliser complex. www.the-eic.com

@TheEICEnergy

EIC Monitor is published on a quarterly basis.

October 2015

E2S Warning Signals will launch two new product families at ADIPEC 2015, 9-12 November, Abu Dhabi. E2S Warning Signals, the UK based independent audible and visual warning device manufacturer, has exhibited at the show for many years. At this year’s event on Stand 8320 in the UK Pavilion E2S is launching two brand new families of alarm horn sounders and light strobes and introducing two ranges launched earlier in 2015. The stand focuses on explosion proof and intrinsically safe warning signals developed to meet the challenging needs of the offshore and onshore oil and gas industry.

Eaton has integrated the amended characteristics of ‘IE3 ready’ motor protection devices into its free CurveSelect software tool. This enhanced functionality makes it even easier to compare the tripping characteristics of protection devices. The design of switchgear and distribution systems can easily be optimised to deliver maximum availability and reliability while adhering to the new European energy efficiency regulation. CurveSelect can be used to assess not only interaction between a wide range of Eaton products, but also between Eaton products and those of other manufacturers.

The centrepiece of the stand is a preview of the new premium STEx stainless steel enclosure explosion proof warning signal range, which offers outstanding corrosion resistance in aggressive environments combined with outstanding performance. Also on show is the new D1x range, intended for NEC/CEC Class I and Class II Division 1 and Zone 1 & 20 applications. The strobe units are available in seven colours with a UV stable polycarbonate, field replaceable filter; the alarm horns with either traditional flared horns or an omni-directional compact radial horn. A threaded flame path enables quick installation and simplifies maintenance inspection and the innovative internal arrangement maximises wiring space.

For effective and economical protection of power systems, the tripping curves of the protection devices must be accurately matched to the specifications of the equipment used. However, in practical applications, it is almost always necessary to use several protection devices that work in conjunction with each other. To determine the exact tripping response of the devices used in such applications, the actual settings of each device must be taken into account. This is a difficult and time-consuming process when working simply with printed tripping characteristics.

Also on display are the D2x and E2x alarm horns and combination signals approved to UL, cULs, ATEX & IECEx Class I & II Div 2 and Zone 2 & 22 alongside the industry standard BEx explosion proof and the IS-mini intrinsically safe product ranges. Sales and Marketing Director Neal Porter will be at the stand together with other staff from the London head office to answer questions and talk about the new product releases, including the new line of stainless steel body devices. For more information please visit: www.e2s.com

CurveSelect makes this task faster, easier and more certain. An Excelbased software tool, CurveSelect allows the precise tripping curves for all devices to be generated and documented. It also supports simultaneous display of curves for multiple devices using the same time and current scales.

Two big names with a shared heritage in submarine cabling are collaborating on a new project for the Wikinger offshore wind farm in the Baltic Sea. The Prysmian Group has chartered Global Marine Systems’ cable-laying vessel, the CS Sovereign, from mid2016 into early 2017. Her remit will be to install inter array cables at the German offshore wind farm that is currently estimated to be providing power for nearly a quarter of a million European homes. The Wikinger offshore wind farm is situated in the German Exclusive Economic Zone (EEZ) of the Baltic Sea, 35km from the island of Rugen and near the maritime borders with Denmark, Sweden and Poland. The site encompasses an area of approximately 35 sq km giving an estimated capacity of up to 350MW. The CS Sovereign is the ideal vessel for the installation and burial of cables for this sector. It is equipped with two, powered 2,300 tonne ‘basket’ turntables, designed to operate at a maximum linear speed of 900m/hour, optimising the cost-efficiency of cable-laying. Additionally, her open deck allows the deployment of a variety of subsea vehicles to assist in the process.

CurveSelect currently supports 11 languages, and users can gain free access to the programme by simply completing a short registration process. Registered users benefit from free email notification of updates. A comprehensive white paper providing detailed information on the assessment of tripping characteristics and the use of CurveSelect is also available as a free download: www.eaton.eu/selectiontools www.the-eic.com

MEMBER NEWS This multi-purpose DP2 vessel has been involved in many projects in the renewables sector most recently Global Tech 1 with the installation and burial of 80 inter array cables, previously working on the Thornton Bank project off the coast of Belgium in 2011 and before that Horn’s Rev 2 working for Dong Energy at the wind farm off Denmark. CS Sovereign earlier this year completed an oil and gas fibre optic installation project in the North Sea for offshore communications specialist Tampnet. Visit: www.globalmarinesystems.com uk.prysmiangroup.com

Following increasing demand for polymer solutions, engineering firm Nylacast has recently invested in the development of a new website. The new digital offering allows customers, partners and students to fully understand and discover the endless potential of using engineering polymers within industry applications.

In order to share this engineering experience the new website features a dedicated knowledge centre, created to share the company’s passion for the education of selecting polymers as an engineering material proven to increase the performance and efficiency of applications and operations worldwide. Visitors to the website are able to regularly view updated content ranging from product case studies through to video workshop sessions presented by the companies leading research & development professor.

Oceaneering Asset Integrity has officially opened its new Validation and Competency Centre, one of the most technically advanced facilities of its kind in the world.

Increasing our digital offering to a growing list of worldwide customers and visitors aligns with Nylacast’s drive for continuous improvement. Junaid Makda, Nylacast

The new facility, which has been supported by the Welsh Government, will enhance its validation services for new technologies as they come to market and ensure the competency of operators to carry our inspection services worldwide.

Global Marine Systems

The new, multi lingual website also features cross platform functionality aimed at meeting the needs of industry engineers. Whether visitors are on the move, on site or in the office, the website is easily available and optimised for use on smartphones, tablets and desktops, allowing for customers and partners to easily access vital information, documents, data and downloads on the engineering firms’ numerous and unique products, services and capabilities at the touch of a button. With manufacturing and distribution facilities located in the UK, USA and South Africa, Nylacast services key industries within a worldwide market, exporting to over 43 countries. The new website is now live at: www.nylacast.com

Oceaneering Asset Integrity is part of US headquartered Oceaneering International Inc. Its Swansea operation is already designated a Centre of Excellence within the group for new specialist inspection services to support advanced non destructive testing services for the oil, gas, energy and construction industries.

The centre doubles the size of its existing centre in Swansea and forms part of a two-pronged investment that includes a new facility currently under construction in Pembrokeshire, both of which are supported through the Welsh Government’s Economic Growth Fund, safeguarding the existing workforce and creating an additional 15 new jobs. Oceaneering has 11 operations in the UK with personnel from Swansea travelling the world to provide expert support to clients. The new facility, which has state of the art equipment, provides a purpose built dedicated centre of excellence to independently assess and validate advanced NDT inspection methods. For more information please visit: www.oceaneering.com @TheEICEnergy

PX Group

The px Group has signed a long term agreement with North Sea Midstream Partners (NSMP) to operate and maintain the St Fergus gas terminal and associated offshore pipelines. The O&M agreement will take effect on completion of the sale of these assets by Total to NSMP. The Frigg UK Pipeline (FUKA) is a 362km gas pipeline delivering gas from some 20 fields in the Northern North Sea to the terminal at St Fergus, 35km north of Aberdeen. Total holds a 100% operated interest in the FUKA pipeline.

Electrical enclosure designer and manufacturer Rainford Solutions has launched a new mobile app which has been developed to allow customers to download the Rainford app direct onto their mobile phone, enabling them to search for new products and information online. It also includes a map locator and directions so customers can find Rainford more easily. In addition the app will also help to promote the Rainford brand and increase customer engagement across an additional social network distribution channel.

The St Fergus gas terminal is a three-train processing plant with a capacity of 2,648 million cubic feet of gas per day. Total also holds a 100% operated interest in the terminal. The Shetland Island Regional Gas Export System (SIRGE) is a 234km gas pipeline with a capacity of 665 Mmscf/d connecting the Shetland Gas Plant to the FUKA pipeline. Total holds a 67% operated interest in the SIRGE pipeline alongside Dong E&P (UK) Ltd (18.3%), Chevron North Sea Ltd (7.2%) and OMV (UK) Ltd (7.5%). Stewart Mortlock, Director of Operations at px, will oversee the commencement of the contract later this year. A new Aberdeen office will be opened by px to provide engineering and commercial management of the infrastructure. Visit: www.pxlimited.com

Julie Houghton, Marketing Manager, Rainford Solutions, said: “Our mobile strategy is moving at a fast pace with more new developments planned into the New Year. We have created an app that allows our customers to search for information and keep up to date with all the latest news and enclosure solutions from Rainford while they are on the move. The app provides a better experience for our customers’ and has been designed with innovative features which include an easy to navigate home screen, scrolling product photos, videos, a quick contact enquiry form and they also have the option of connecting direct to our Rainford Facebook and Twitter accounts.” Please download the app and follow the instructions to install on your phone by visiting: rainfordsolutions.appsme.com

Global flow control company Rotork has announced the acquisition of the Bifold Group, a leading manufacturer of pneumatic and hydraulic instrument valves and components. Bifold is a leading manufacturer of instrument valves and accessories, piping valves and pumps for the oil, gas and wider industrial markets, with expertise in a number of niche sectors including subsea and wellhead control systems. It also has market leading technology in areas that include the development of solenoid valves with ultra-low power requirements.

Rainford has been providing standard and bespoke electronic enclosure solutions for over 30 years to a diverse client base across a wide range of industry sectors including control and instrumentation, oil and gas, power stations, substations and wind farms, which is all supported by an extensive in-house design, engineering and manufacturing capability at its UK manufacturing facility in St Helens, Merseyside.

Bifold has a strong market presence and excellent brand recognition. As part of Rotork, Bifold will sit within the Rotork Instruments division and will be able to offer a broader product portfolio to its customers. Commenting on the acquisition, Peter France, Chief Executive, Rotork, said: “The acquisition of Bifold represents an exciting step forward in the continued development of Rotork Instruments. www.the-eic.com

MEMBER NEWS This strategic acquisition of a long held target of Rotork’s is directly in line with our core strategy of strengthening Rotork’s presence in the flow control sector and broadening our product portfolio. Bifold is a highly complementary business to Rotork with a wellregarded management team that provides Rotork with an enlarged platform to further offer its products and services to the oil and gas sector and wider industrial markets. The combination of Bifold’s extensive product portfolio and leading technology with Rotork’s international sales network and geographic reach will significantly strengthen our presence across the global flow control market.” Visit: www.rotork.com www.bifold.co.uk

Siemens has signed a contract for the delivery of 18 model SGT-800 industrial gas turbines to Thailand and will also provide technical field assistance for installing the units. Six of the turbines have a capacity of 53MW each, while the capacity of the remaining twelve units is 50.5MW each. The units are to be installed in nine combined cycle cogeneration power plants with a total installed electrical capacity of 1,100MW. The customer is TEC Project Services Corporation (TPS), a subsidiary of the Japanese Toyo Engineering Corporation (TEC).

TPS is erecting the industrial power plants for the Thai company Gulf. Gulf MP is a joint venture between Thai Gulf Energy Development Co and Mitsui & Co. The nine industrial power plants, each equipped with two SGT-800 gas turbines, are to be erected in five new industrial parks: Eastern Seaboard Industrial Estate, Hemaraj Eastern Seaboard, Hi-Tech Industrial Estate, Hemaraj Rayong Industrial Land and Hemaraj Saraburi Industrial Land. Thailand is the largest market for Siemens for this gas turbine model, with 70 SGT-800 units having been sold to date. Twenty of these are already in commercial operation. The market share in Thailand for SGT-800 is as high as 65% in the last five years. As of June 2015, 270 of the model SGT-800 gas turbines have been sold worldwide and the fleet has accumulated more than three million operating hours. The 53MW rated version remains true to the triedand-tested and reliable design of the SGT-800 gas turbine, with only minor improvements being implemented, such as optimised and re-staggered first compressor stages, an improved cooling design for the turbine vanes and adjusted clearances in turbine stages one and two. All improved components are fully retrofittable within the 50.5MW rated version. For further information on the Siemens SGT-800 gas turbine please visit: www.siemens.co.uk

Since the start of the year Tekmar Energy has expanded its reach into new global regions, won multiple orders of repeat business and brought in six new clients including JDR Cables, FlexLife and GE Oil & Gas. In addition, Tekmar has successfully supplied and installed equipment on the Martin Linge project. Its involvement included supply of bend restrictors on the world’s longest high voltage subsea power cable at 170km. Tekmar’s growth has seen the company expand into the Gulf of Mexico and Middle East for the first time. To support its expansion in the United Arab Emirates, Tekmar has also appointed Emdad as its strategic, local partner. Emdad is an established service provider and EPC contractor which has played a vital role in enabling Abu Dhabi’s key energy players to achieve higher levels of reliability, and performance. With more than 30 years’ experience, Tekmar is a market leader in the design, manufacture and supply of subsea cables, umbilicals and flexible protection systems for the renewable energy and oil and gas industries.

Tekmar’s renewable energy division has also announced success in the past month. The firm was selected to provide its innovative TekTube on a wind farm in the Netherlands as well as supplying TekLink cable protection systems in the US. Tekmar will exhibit at ADIPEC for the first time in November where it will be on Emdad’s stand. Please visit: www.tekmar.co.uk @TheEICEnergy

Events Diary

UK, Overseas & Training September 2015 28 Management Course: Terms and Conditions in the Contract 29 Management Course: Employment Law 30 Management Course: Terms and Conditions in the Contract

Four Points by Sheraton, Dubai bto solicitors, EIC London Four Points by Sheraton, Dubai

October 2015 3 Industry Overview: Fundamentals of Subsea EIC Rio de Janeiro 6 Export Showcase: Saudi Arabia: Aramco Supplier Initiative Prince Philip House, London 6 Industry Overview: Fundamentals of Oil & Gas EIC Houston 6 Industry Overview: Fundamentals of Upstream EIC Rio de Janeiro 7 Business Presentation: Opportunities with Technip St Regis Hotel, Abu Dhabi 9 Corporate Entertainment: 6th Annual Sporting Clays Tournament American Shooting Centers, Houston 14 Management Course: Understanding Engineering Procurement EIC London 14 Industry Overview: Fundamentals of Oil & Gas Four Points by Sheraton, Dubai 15 Management Course: Finance for the Non-Finance Manager Neos Learning, EIC London 15 Business Presentation: Opportunities with Techint Restaurante do Empresario, Rio 20 Management Course: Introduction and Awareness to ISO 9001 SGS Academy, EIC London 20 Regional Showcase: Northern Region Contractors Update Village Urban Resort, Manchester 20-24 Business Presentation: Opportunities in Sabah Kota Kinabalu, Sabah 22 Technical Workshop: Introduction to Centrifugal Pump Design SPP Pumps, Gloucestershire 22 Industry Overview: Fundamentals of LNG EIC Houston 27 Industry Overview: Fundamentals of Natural Gas EIC Kuala Lumpur 27 Industry Overview: Understanding Local Content DNV GL, EIC Rio de Janeiro 27-28 Management Course: Finance for the Non-Finance Manager Four Points by Sheraton, Dubai 29 Export Showcase: Opportunities in the Norwegian North Sea Crown Plaza, Dyce, Aberdeen November 2015 4 Export Showcase: 4 Industry Overview: 5 Technical Workshop: 7 Technical Workshop: 10 Export Showcase: 10 Technical Workshop: 11 Industry Overview: 16 Technical Workshop: 17 Technical Workshop: 18 Management Course: 19 Management Course: 26 Industry Overview:

Opportunities in Egypt Fundamentals of Subsea Introduction to FPSOs Introduction to FPSOs Opportunities in Egypt Introduction to FPSOs Fundamentals of Subsea Introduction to Control Valves Introduction to Gas Turbines Terms and Conditions in the Contract Commercial Awareness Fundamentals of Oil & Gas

EIC London EIC Houston EIC Houston EIC Rio de Janeiro EIC London EIC London EIC London Severn Glocon, West Yorkshire Siemens, Lincoln Four Points by Sheraton, Dubai Neos Learning, EIC London EIC Rio de Janeiro

December 2015 1 Regional Showcase: Collaboration and Commodity Sharing Aberdeen 2 Technical Workshop: Introduction to Shale Gas EIC London 2 Industry Overview: Fundamentals of Power E.ON UK Engineering, Nottingham 3 Industry Overview: Fundamentals of Oil & Gas EIC London For further information on UK & Overseas Events and Training please contact: info@the-eic.com www.the-eic.com

@TheEICEnergy

October 2015

Events Diary

Exhibitions & Delegations 2015 28 September- 2 October 19-22 October 9-12 November 23-27 November

Status

Overseas Delegation to Mexico

Fully Booked

Overseas Delegation to Ghana ADIPEC Abu Dhabi Overseas Delegation to Venezuela

Fully Booked Fully Booked

Overseas Delegation to Algeria World Future Energy Summit (WFES) Abu Dhabi Overseas Delegation to Papua New Guinea Overseas Delegation to Egypt

Booking Now Booking Now

Overseas Delegation to the Philippines Overseas Delegation to Turkey Overseas Delegation to South Korea Australasian Oil & Gas (AOG) Perth Overseas Delegation to Thailand and Malaysia Overseas Delegation to UAE and Oman

Booking Now

2016 10-15 January 18-21 January 25-29 January 31 January- 4 February 1-5 February 8-12 February 22-26 February 24-26 February 7-10 March 20-23 March

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

National Events 2015

@EICOverseas

Status

15 October 24-25 November

EIC National Dinner EIC Connect Energy

London Manchester

Last Few Places Remaining Stand Space Still Available

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

www.the-eic.com

@TheEICEnergy

October 2015

EIC Overseas Exhibitions and Delegations

Overseas Exhibitions EIC Overseas Exhibitions and Delegations Overseas Delegation to Venezuela 23-27 November 2015 #EICVEN15 The EIC is organising an oil and gas trade delegation to Venezuela. 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.

World Future Energy Summit (WFES) 18-21 January 2016 #EICWFES16 Abu Dhabi National Exhibition Centre The World Future Energy Summit (WFES) is the world’s most influential event dedicated to advancing future energy, energy efficiency and clean technology.

It’s where government leaders, thought leaders, entrepreneurs, investors and thousands of visitors come together to experience the latest developments in future energy. TAP grants are available to eligible UK companies to the amount of £2,000. We have also worked closely with the organisers of the show to create a cost effective package for our exhibitors. For more information on exhibiting with the EIC please contact: mark.gamble@the-eic.com

A founding member of OPEC and an important player in the global energy sector, Venezuela has the world’s largest crude reserves, nearly 300 billion barrels, and is South America’s biggest producer. The oil and gas sector is responsible for roughly 11% of Venezuela’s GDP, which makes the state-owned oil company PDVSA a crucial player in the country’s economy. Oil and gas exports account for 96% of total earnings. The country has an ambitious investment plan, which includes multi-billion dollar investments in both upstream and downstream projects developed jointly with various foreign partners. They include, among others, the Repsol-Eni consortium, which has just begun production in the massive Perla offshore gas field; Chevron, which is part of the consortium responsible for the Carabobo-3 heavy oil block; and Rosneft, with interests in both gas and heavy oil. To secure your place on the delegation please contact: amy.ford@the-eic.com

Australasian Oil & Gas (AOG) 2016 24-26 February 2016 Perth, Australia #EICAOG16 The EIC is proud to be organising and managing the UK Pavilion at Australasian Oil & Gas (AOG) 2016. Due to the falling value of the Australian dollar, prices have decreased from previous years for the 2016 show.

Overseas Delegation to Algeria 11-15 January 2016 #EICALG16 The EIC is organising an oil and gas trade delegation to Algeria. Delegations are an excellent introduction to a new market in a supportive environment and the perfect way to strengthen existing business relationships. Delegates will have the opportunity to attend organised group meetings with key local players, as well as incorporating briefing meetings represented by qualified speakers with in-market experience and the opportunity to meet with local companies. Algeria is the largest natural gas producer in Africa, and is among the top three oil producers within the continent. The industry is dominated by Sonatrach who are proposing to make investments of approximately £90 billion between 2015 and 2019. For more information please contact: deanne.lintorn@the-eic.com www.the-eic.com

@TheEICEnergy

Australia is also poised to become the world’s largest exporter of LNG come 2018, with many large projects underway. Opportunities are available for UK companies to assist the key operators and contractors in both operations and projects as well as maintenance. To be part of the exhibition contact: mark.gamble@the-eic.com 14

October 2015

EIC UK News

News from our UK offices

Export Showcase Opportunities in the Norwegian North Sea Thursday 29 October 2015 Crown Plaza, Dyce, Aberdeen This event will bring together operators, developers and contractors who are active in Norway and UK North Sea projects. The event will outline the existing and future opportunities, allow for an interactive question and answer discussion, and showcase members’ collaboration prospects. Book now at: http://www.the-eic.com/EventDetail.aspx?dateid=1281

Forthcoming Events

Export Showcase Saudi Arabia: Aramco Supplier Initiative Tuesday 6 October 2015 Prince Philip House, London Saudi Aramco, the state-owned oil and gas company of the Kingdom of Saudi Arabia, is a top exporter of crude oil and natural gas liquids; with solid traction in the upstream market, the company is now looking to expand activities along the entire petroleum value chain. Its current project portfolio includes some of the largest of the Kingdom’s oil and gas investments and over 50 projects with a combined capex of US$137.4 billion are being tracked (source EICDataStream), offering a multitude of opportunities for the supply chain. The EIC’s Aramco Supplier Initiative aims to inform new and existing suppliers about the prospects available to them on global operations and projects. It will also provide information on further scope for involvement with the company, including potential opportunities for UK suppliers to become registered and approved manufacturers, to localise manufacturing and services in the Kingdom of Saudi Arabia, to partner in the development of new technologies and to host engineering interns. Contact: jennifer.hole@the-eic.com

Regional Showcase Collaboration and Commodity Sharing Tuesday 1 December 2015 Aberdeen venue tbc This Regional Showcase will focus on the changing landscape of the oil and gas supply chain by outlining how operators are beginning to collaborate and investigate commodity sharing. The event will feature a panel of operators, contractors and relevant professional bodies from across the North Sea oil and gas sector to discuss the opportunities around this topic. The event will also allow members to showcase their findings to other members, contractors and operators. This will then be followed by an interactive question and answer session with the panel and EIC members. Register your interest: pamela.nicholson@the-eic.com Export Showcase Oil and Gas Opportunities in Russia Tuesday 8 December 2015 EIC Conference Suite, London Russia offers one of the largest petroleum industries in the world, producing an average of 10 MMbbl/d. The country also has the largest reserves, is the largest exporter of natural gas and has the second largest coal reserves globally. The EIC is currently tracking over 200 active and future upstream, midstream and downstream projects via EICDataStream, with a combined capex of US$1 trillion. The countries’ exporting capabilities to bordering countries means that pipeline projects in particular provide a wealth of prospects for UK companies. This Showcase aims to dispel some of the myths related to doing business in Russia and will highlight where the opportunities sit for UK suppliers. Register your interest: jennifer.hole@the-eic.com

Regional Showcase Northern Region Contractors Update Tuesday 20 October 2015 Village Urban Resort, Bury, Manchester The Northern Region Contractors Update is back by popular demand. This event will again feature a panel of speakers including Amec Foster Wheeler, Costain and WorleyParsons who supported the event last year and will also include new addition Cofely Fabricom. This will be a great opportunity for you to learn more about these major organisations, their project activities and how you should engage with them. Further to this they will be imparting details about the challenges they face and looking at how the supply chain can work with them to overcome these. Alongside this, it will be a fantastic platform for networking with your fellow members across the UK. Contact: jennifer.hole@the-eic.com Northern Region Committee Annual General Meeting Tuesday 20 October 2015 Village Urban Resort, Bury, Manchester Does your company have a presence in the Northern Region? Would you like the opportunity to represent your company and help shape the future direction of the EIC within the region? If so, you can nominate yourself or a colleague for a place on the above Regional Committee. The EIC Regional Committees meet four

times a year at various locations across the region, with representation from a wide range of disciplines. Committee meetings enable members to discuss market trends and industry news; feedback on regional activities; suggest topics and speakers to include in our events programme and also afford plenty of networking opportunities. Being part of the Committee provides an excellent platform to raise your personal and company profile. For more information please contact: helen.doona@the-eic.com

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

@TheEICEnergy

October 2015

EIC National Events

EIC AWARD FOR SUPPLY CHAIN EXCELLENCE 2015 SHORTLIST ANNOUNCED We are delighted to announce the shortlist for the EIC Award for Supply Chain Excellence 2015, a prestigious accolade to recognise an EIC member organisation that has demonstrated excellence within the energy supply chain. In its third year, submissions have maintained the exceptionally high benchmark set in 2014. Five companies have now been shortlisted by our independent judging panel, who have all submitted excellent engineered solutions, products and services that demonstrate superiority within the supply chain:

Stork’s Advanced Online Desanding technology (AOD) is an integrated online sand management system which removes and cleans sand from live separators for safe overboard discharge. It is a modular system, comprising of a series of specialist equipment to agitate, remove, and clean accumulate sand without causing undue process disturbance or loss of production. Now in its third generation, AOD has been continually improved since the launch of the first system in 2006 to improve safety, reduce environmental impact, operating costs and reduce workscopes.

Advanced Industrial Solutions Limited has successfully developed the Jet Fire Pro 120 Flexible Passive Fire Protection jacketing system. The product is the world’s thinnest flexible fire protection jacketing system offering 120 minutes of life saving fire protection. The Jet Fire Pro 120 system was developed over a period of time and designed to protect emergency equipment such as emergency shut down valves in the event of a jet fire. The system has received the coveted Lloyd’s Register and DNV approval.

Tracerco has developed DiscoveryTM, a breakthrough in subsea pipeline inspection. For the first time, oil companies can non-intrusively inspect complex subsea flowlines (including pipe in pipe, risers and pipe bundles) for both flow assurance issues and integrity flaws from the outside of the pipe without removing any protective and insulation coatings. DiscoveryTM provides data on pipeline integrity and flow assurance issues to an accuracy of close to a millimetre, without interrupting production or removing coatings.

ALE Heavylift has successfully developed the Mega Jack 800, a jacking system with 800t jacking capacity per support tower increasing the available solutions to clients. The system was designed to bridge the gap in the capacities of the conventional 60-500t capacity climbing jack systems and ALE’s Mega Jack System has a capacity of 5,200t per support tower. The Mega Jack 800 is scalable and as multiple towers can be used together its versatility can accommodate a wide variety of weights and structures across industry sectors.

Entries were examined by a high-profile judging panel including representatives from some of the most influential energy operators and contractors: • Andrew Leadbetter, PSCM Regional Director, BP; • David Wylie, Group Procurement Director, Centrica; • Chris Squires, Lead Supply Chain Engagement Manager, EDF Energy; • Norman McLennan, Head of Global Supply Chain, Sasol. The winner of the award will be announced at the prestigious EIC National Dinner, which will be held in the Central Hall at the Natural History Museum on 15 October 2015.

SPX Power and Energy’s ClydeUnion Pumps Brand (SPX) has enhanced its revolutionary Turbine Water Lubricated (TWLTM) reactor cooling water pump following the Fukushima disaster in 2011. The TWLTM water pump can withstand higher than normal seismic events, can start and run reliably when submerged and also withstand the thermal shock associated with rapid submergence when already operating at elevated temperatures. Its ability to operate reliably under extreme conditions helps to protect the future of nuclear energy as a safe, sustainable and secure power source. www.the-eic.com

@TheEICEnergy

A few tables remain for the National Dinner, to book your place simply contact: Charmaine Atkinson National Events Co-ordinator Tel +44 (0)1642 379 975 Email charmaine.atkinson@the-eic.com

October 2015

EIC National Events

www.the-eic.com

@TheEICEnergy

October 2015

EIC Middle East News

Middle East News

Forthcoming Events

Business Presentation Opportunities with Technip Wednesday 7 October 2015 St Regis Hotel, Abu Dhabi

Office News

It was an unexpected but nevertheless positive development when the Foreign Secretary, Philip Hammond, travelled to Tehran to officially re-open the British Embassy on 23 August. In support of this, we have been liaising with the UK Government to propose a series of initiatives. These initiatives will secure engagement for UK companies when the sanctions regime is eased, which is expected to happen in the first quarter of next year, provided the agreement (reached back in July) is duly ratified by all parties. In response to this, the EIC in London hosted a showcase event last month, which will be held in the Middle East before the end of 2015. Our main event this month is a business lunch presentation with Technip. As one of the primary EPC contractors active in the region, we can be sure that Technip will attract many of our local members, just as McDermott’s did last month. Further planned events include presentations from Petrofac in December and SBM Offshore in January. We are involved with two delegations this month, one in Ghana, which will be closely followed by Africa Oil Week in Cape Town at the end of the month. This is an event we are particularly looking forward to as it is renowned for providing a clear picture of current and future activities across the whole African continent. Following this will be ADIPEC, which has grown to be the EIC’s largest exhibition and most anticipated event of the year. This will include an ‘ice breaker’ reception, where our exhibitors will get the chance to network with a chosen cross-section of oil and gas representatives that are active and resident across the UAE. Once again, our training course covering the understanding of contractual terms and conditions proved to be extremely successful. With the initial course selling out back in June, we arranged two further courses in September, both of which were fully booked within a very short space of time. As a result, we have arranged another course for next month which has already attracted a high number of bookings. Other training courses currently on the schedule include the ever-popular Fundamentals of Oil & Gas, plus a new title, Finance for the Non-Finance Manager. Please visit the Events tab on our website for full details of all our activities. One other noteworthy topic is the newly-launched and revamped EICDataStream. With a number of truly enhanced and innovative features, it is not surprising to see how popular this has become with our members. We would also like to thank all of our local members who devoted time to giving us feedback, which was invaluable in developing the database. If you are based in Dubai and would like any training on the new system, please contact Thomas Hoefling: thomas.hoefling@the-eic.com Terry Willis, Director, Middle East, Africa & CIS Contact: terry.willis@the-eic.com

Industry Overview

Fundamentals of Oil & Gas Wednesday 14 October 2015 Four Points by Sheraton, Dubai

Management Course

Finance for the Non-Finance Manager 27-28 October 2015 Four Points by Sheraton, Dubai To register your interest or to book on the above courses please go to www.the-eic.com/Training or contact Helen Aittis: helen.aittis@the-eic.com

Regional Comment

Amec Foster Wheeler awarded two MENA contracts Amec Foster Wheeler has been awarded two significant contracts in the MENA region. The first is an extension of the existing project management consultancy contract for the UZ750 redevelopment project in the Upper Zakum field, offshore Abu Dhabi. Amec Foster Wheeler has been involved in the project since 2008. Scope of the contract extension covers PMC services that will be delivered as part of an integrated project management team. Work is expected to be completed in December 2017. The company has also been awarded a contract to supply engineering services for the de-bottlenecking of the Hassi R’Mel gas field in Algeria. The contract, which has been awarded by Algeria’s Sonatrach, covers a flow assurance exercise, detailed pipeline design, compression studies and multi-disciplined specification of additionally-required infrastructure. Chiyoda-CCC wins US$150 million offshore contract Chiyoda-CCC has been awarded an EPC contract for modifications of facilities at Das Island, located 160 kilometres north-west of Abu Dhabi. The contract is worth around US$150 million and ties in with ADMA-OPCO’s Nasr field development. Das Island accommodates crude processing facilities for ADMA-OPCO’s offshore oil production. Kuwait hints at offshore exploration plans Kuwait plans to start an offshore oil exploration programme within two years, according to an article by state news agency KUNA. The agency cited a Kuwait Oil Company (KOC) executive as saying that offshore exploration was part of plans to boost oil output capacity. Bader Al-Attar, Manager of Planning, KOC, was quoted as saying that Kuwait aims to add a total of 700,000 barrels per day of crude oil production capacity from offshore and onshore areas. Attar did not identify the potential offshore locations.

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

@TheEICEnergy

October 2015

EIC Training Services

Training Services

Three simple ways to book: Visit www.the-eic.com Email training@the-eic.com Tel +44 (0)20 7091 8611

Commercial Awareness a Key Competitive Advantage

At some point in everyone’s career they will have a discussion where they are advised to pursue the ability to take a more ‘commercial’ perspective but what does that really mean? There are few definitions and even fewer books or courses which explore this. On the EIC’s one day training course Stephen Berry seeks to bridge this gap and provide an answer of how to consistently be commercial in your outlook, focusing on a combination of aspects such as: • A joined up approach • The big picture, your organisation and its market • Looking at the longer term • Being customer focused • Appreciation of business levers • Being financially aware • Being resource efficient This course will help you to explore aspects of what it means to have a commercial mind-set in any business situation. With copious examples from a career at the sharp end, Stephen will challenge you to critically consider the extent to which both you and your organisations are exhibiting the commercial attributes of business winners – or not. Steps for improvement will then be developed and the nebulous and ill-defined ‘commercial’ becomes something which is practical, understandable and able to be implemented, to the benefit of you and your organisation. The wastelands of world business are littered with the carcasses of organisations who have failed to appreciate what ‘commercial’ means and operated in ways which are myopic, internally focussed, political, or with a lack of apparent wisdom. Whereas others, who have enacted commercial strategies and decisions have progressed and succeeded – make sure your business is one of them and secure your place today.

Forthcoming Training Industry Overview

Fundamentals of Power Wednesday 2 December 2015 E.ON Engineering Academy, Nottingham A comprehensive overview focusing on fundamental concepts from how a modern day power plant functions and the various types, through to transmission and distribution. Incorporating a simulator of the power plant control room, this course will allow you to gain a practical and commercial understanding whether you are new to the industry or looking to get involved in this particular sector.

Industry Overview

Fundamentals of Oil & Gas Thursday 3 December 2015 EIC London A comprehensive overview focusing on fundamental concepts from exploration and production, its structures and costs to future developments within the industry. This course will provide you with a greater understanding of the industry as a whole, whether you are new to the oil and gas industry or looking to enhance your knowledge further.

Technical Workshop

Introduction to Shale Gas Wednesday 2 December 2015 EIC London A comprehensive workshop focusing on key concepts from technical drilling and hydraulic fracturing techniques to both the opportunities available and challenges faced. This course will enable you to gain an insight into this emerging sector whether you are new to the oil and gas industry or looking to gain a wider understanding of the field.

Trainer Stephen Berry, MBA MSc BSc (Hons) FCMA CGMA ACIB DipFS PgD, has spoken at conferences and run business courses in over 30 countries on four continents. Author of ‘Strategies of the Serengeti’ and ‘Teach Yourself Strategy in a Week’, his work is always engaging, entertaining and eminently practical.

HSE Training

Introduction to ATEX Directives 94/9/EC & 1999/92/EC Thursday 3 December 2015 SGS Baseefa, Buxton A comprehensive overview focusing on key concepts from explosions and protection objectives to the legal framework of the directive. This course will enable you to recognise the necessary requirements needed to comply with the ATEX directives and will be particularly useful if you have a responsibility for compliance or are new to the field.

Management Course

Commercial Awareness Thursday 19 November 2015 EIC London A comprehensive course focusing on significant aspects from looking at the bigger picture, your organisation, the market it operates in and the perspective of your customers through to marketing and finance, what these mean for your business, how to use them effectively and the potential consequences of misuse. This course will enable you to operate more commercially and demonstrate greater awareness, a vital component of both business success and career progression. www.the-eic.com

@TheEICEnergy

In addition to our scheduled courses we are always happy to discuss your individual needs. Contact: terri.sylvester@the-eic.com 20

October 2015

EIC Asia Pacific News

Asia Pacific News

KKB confirms Kinabalu award Malaysian company KKB Engineering has confirmed that it is set to win an engineering, procurement and construction contract on Talisman Energy’s Kinabalu deep wellhead platform. KKB said work on the platform, which is still subject to the award of a formal contract, was scheduled to start in the second quarter of 2017. The work will see a 3,000 tonne wellhead platform and associated pipelines installed and linked to the field’s existing infrastructure at the offshore Malaysian field.

Forthcoming Events Business Presentation Opportunities in Sabah 20-24 October 2015 Kota Kinabalu, Sabah

Industry Overview

Regional Comment

Indonesia Inpex submits revised plan to increase FLNG unit size Inpex has submitted a revised plan of development for its Abadi gas field project off Indonesia, which will see the Japanese operator and partner Shell go for a vastly increased size of floater than previously expected. The revised plan calls, as expected, for a floating liquefied natural gas (FLNG) unit with capacity of 7.5 million tonnes per annum of LNG. The first plan of development for a 2.5 million tpa unit was approved in 2010.

Petronas awards Technip flexible pipe gig Technip has been awarded an engineering, procurement, installation and commissioning contract by PETRONAS on the D18 project offshore Sarawak, Malaysia. The contract covers the procurement and installation of two eight inch water injection flexible pipes which will connect three fixed jacket platforms.

Regulator approves plans to develop 18 fields Indonesian regulators have approved plans to develop 18 oil and gas fields in the country, with total investments of US$3.65 billion and projected outcome of US$10.55 billion. The developments were proposed since the start of the year, said Elan Biantoro, a spokesman for upstream oil and gas regulator SKK Migas. The approved fields include Chevron Pacific Indonesia’s Sumur Gulamo North-01 Block Rokan in Riau province, with total investment of US$1.2 million. Other projects include Pacific Oil and Gas’s Parit Minyak field in Blok Kisaran in North Sumatra, with investment worth US$53.5 million, and PHE ONWJ’s Foxtrot field in Block Offshore North West Java (ONWJ) with total investment of US$425.5 million. SKK Migas has also approved the revision of the plan of development for the Tiung Biru-Jambaran field in the Cepu Block, Central Java, with total investment of US$2.06 billion.

SapuraKencana poised for FEED off Sarawak Malaysia’s SapuraKencana Petroleum (SKP) is preparing to move to the front-end engineering and design phase of its large shallow-water gas discoveries in blocks SK310 and SK408 off Sarawak, East Malaysia. Aker Engineering, Technip and WorleyParsons’ local subsidiary Ranhill Worley are the recognised big three in Malaysian oil and gas engineering and are expected to receive a bid document, as are several other licensed players in Malaysia. SKP is drilling another five exploration wells on SK408 to further assess the potential of the block. For both projects, SKP is understood to be in negotiations with PETRONAS on gas sales agreements that are expected to be concluded in 2016, said sources. SKP operates SK408 with a 40% interest, with partners PETRONAS and Shell each on 30%.

India Cairn India seeks jack-ups Cairn India has hit the market for a range of services including jack-up drilling rigs to cater to its offshore exploration commitments off the east and west coasts of India. The company has invited expressions of interest from contractors for a host of requirements for services in Blocks CB-OS/2 off the west coast plus the Ravva, KG-OSN-2009/3 and PR-OSN-2004/1 assets off the east coast. Three jack-up drilling rigs are on Cairn’s wish list – one for Block CB-OS/2, and two for the east coast operations. Expressions of interest are also being sought for a broad range of associated services including directional drilling services; casing, tubular and completion work; cementing services; drilling and fishing tools services; drilling and completion fluids; e-line logging services and coring.

Fundamentals of Natural Gas Tuesday 27 October 2015 EIC Kuala Lumpur If you need any assistance or advice in the region or for more information about upcoming events, please contact: Azman Nasir, Head of Asia Pacific Contact: azman.nasir@the-eic.com Malaysia PETRONAS approves plan for Malaysia’s Ophir field Australia’s Octanex has disclosed that Malaysia’s PETRONAS has approved the revised field development plan (FDP) for the Ophir oil field in Block PM 305, offshore Peninsular Malaysia. Work on the US$90 million Ophir field project, which is being developed under a Risk Sharing Contract (RSC) granted in 2014 to Ophir Production Sdn Bhd (OPSB), will commence immediately. OPSB is a joint venture company comprising Octanex (50%), Scomi Energy Services Bhd (30%) and Vestigo Petroleum Sdn Bhd (20%).

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

@TheEICEnergy

October 2015

EIC North and Central America News

North and Central America News Office News

Forthcoming Events Industry Overview

We were delighted to welcome the overseas delegation to Mexico on 26 September 2015. In partnership with UK Trade & Investment, Aberdeen & Grampian Chamber of Commerce, NOF Energy and Subsea UK, our delegates had the opportunity to attend organised group meetings with key local market stakeholders, attend briefing meetings, and meet with local companies. We will look to host a regional showcase on Mexico to continue to provide our members up-todate market intelligence.

Fundamentals of LNG Thursday 22 October 2015 EIC Houston Attendees will receive an overall overview of LNG to include the scope and size of the LNG industry, the basic technologies involved, a commercial understanding of the value chain elements and the complexities involved in developing an LNG project.

Permasense Ltd, an existing tenant at the EIC North and Central America office, is expanding its regional operations. Taking on a larger EIC suite, the company will welcome two additional staff to Houston. Permasense is a leader in the field of continuous corrosion monitoring, providing real-time data-to-desk measurement of pipe wall thickness in inhospitable and inaccessible environments. We currently have six office suites available, as well as virtual and hotdesk services. If you are interested in finding out more about EICLaunchPad, please do let us know.

Industry Overview

Please join us in welcoming Natalia Bueno to EIC Houston, who has been appointed as our Office & Events Associate Manager. Natalia will be the first point of contact around events and training, and EICLaunchPad services in Houston. As an update, the EIC North and Central America contacts are:

Introduction to FPSOs Thursday 5 November 2015 EIC Houston This technical workshop examines the fundamental key components of FPSO technology and deployment, including design, systems development, subsea engineering, operations and export activities.

Fundamentals of Subsea Wednesday 4 November 2015 EIC Houston The industry overview will provide attendees with an understanding of the fundamentals involved in subsea production; including two main topics – subsea production systems (wellheads, trees, manifolds and subsea controls) and umbilicals, flow lines and risers.

Technical Workshop

Amanda Duhon Regional Manager, North & Central America Tel +1 713 425 6396 Email amanda.duhon@the-eic.com

For information about the EIC Houston office, our upcoming events or should you require any assistance in the North and Central America region, please let us know.

Regional Comment

Natalia Bueno Office & Events Associate Manager Tel +1 713 783 1200 Email natalia.bueno@the-eic.com

Enterprise completes sale of offshore GoM business Enterprise Products Partners has sold its Gulf of Mexico pipelines and services business for US$1.5 billion in order to focus on attractive growth projects onshore in the Eagle Ford and Permian regions. Genesis Energy will assume ownership interest in Enterprise’s offshore assets in nine crude oil pipeline systems, nine natural gas pipeline systems and six offshore hub platforms.

Lisa Defalco Regional Analyst, Oil & Gas Tel +1 713 425 6385 Email lisa.defalco@the-eic.com Michael Borrel Regional Analyst, Power, Nuclear & Renewables Tel +1 713 425 6392 Email michael.borrel@the-eic.com

EDF Renewable Energy acquires OwnEnergy The transaction includes 100% of OwnEnergy’s assets, including its pipeline of future wind projects. EDF, one of North America’s largest renewable energy developers, had not actively sought out the acquisition, rather the deal was largely spurred on by yieldco pressures evident in the US market last winter when SunEdison acquired Boston-based developer First Wind. OwnEnergy will remain a semi-autonomous company in the near-term until the parties set a permanent course of action.

We are excited to host a series of training events this month, as well as our 6th Annual Sporting Clays Tournament and BBQ. We are also working closely with our regional partners to schedule business presentations and a regional showcase on Canada, to take place in January 2015.

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

@TheEICEnergy

October 2015

EIC South America News

South America News

Forthcoming Events Industry Overview Fundamentals of Subsea Saturday 3 October 2015 EIC Rio de Janeiro

Office News

The EIC Rio office hosted its first business presentation from NUCLEP (a key heavy equipment manufacturer), which gave members and key energy personnel the lowdown on the company’s current projects and how to become a supplier.

Industry Overview

Fundamentals of Upstream Tuesday 6 October 2015 EIC Rio de Janeiro Business Presentation Opportunities with Techint Engineering Thursday 15 October 2015 Restaurante do Empresario, Rio de Janeiro

Industry Overview

Understanding Local Content Tuesday 27 October 2015 DNV GL, EIC Rio de Janeiro

Regional Comment

Brazil has new pre-salt estimate A recent study by the Federal University of Rio de Janeiro (UFRJ) puts Brazil’s pre-salt reserves at 176 billion barrels of oil equivalent (boe). The local oil and gas industry generally uses 50 billion boe as a more reliable estimate. According to UFRJ, the 176 billion boe figure is a conservative one as the top of the estimated range puts the country’s reserves at 273 billion boe. The study highlights that only reserves that can be recovered using current technologies were included, although there is no information on the costs involved. The university did a similar study in 2010, when it estimated that Brazil’s presalt polygon could hold between 114 and 288 billion boe.

Ricardo Corrêa, Commercial General Manager, Carlos Barbosa, Sales Manager and Vitor Hugo Machado, Procurement, explained the core business of their company, the components involved in manufacturing for the Angra 3 nuclear project, future nuclear power plants in Brazil, offshore modules, and nuclear propulsion and hulls for submarines. If you are interested in learning about bids with NUCLEP, please visit: www.nuclep.gov.br/licitacao The EIC teamed up with the organisers of Brazil Wind Power 2015 last month to explore the best opportunities for its members. The trade show, which took place from 1-3 September, is the largest wind energy event in Latin America and attracted over 2,000 visitors and over 800 companies last year. The wind industry has seen major growth in Brazil due to significant investment from the Brazilian Development Bank (BNDES) despite the country’s financial crisis. As a result, major turbine manufacturers have opened facilities in the country to source the local market such as GE, Alstom, Vestas and Acciona. OTC Brasil, a local version of OTC in Houston, will take place from 27-29 October in the Riocentro exhibition centre. The event is organised by IBP (Brazilian Petroleum Institute) and OTC (Offshore Technology Conference). At the time of writing, the EIC Rio team is preparing two special initiatives to take place during the show for companies attending: a workshop on Understanding Local Content by DNV GL, and site visits to Brasa Shipyard and the floating, production, storage, offloading vessels (FPSOs) Cidade de Maricá and Cidade de Saquarema.

Bidding round update The Brazilian National Petroleum Agency (ANP) approved the registration of 37 companies interested in bidding for exploration blocks in the country’s 13th bidding round scheduled for 7 October. Approved companies include BP, ExxonMobil, Shell, Statoil, Total and Petrobras. The 13th round will offer 269 blocks, of which 84 are located offshore. Argentine elections signal good news for energy sector Argentina’s general elections will take place later this month, with the two main candidates, Daniel Scioli and Mauricio Macri, both supporters of opening up its energy market to make the country self-sufficient again. This follows 12 years of the Kirchner administration, known for its interventionist actions such as the control of fuel prices, currency exchange restrictions and the expropriation of YPF (a vertically integrated Argentine energy company), which led to a rapid growth of Argentina’s energy deficit. Argentina has the world’s second largest shale gas reserves, estimated at 1,181 trillion cubic feet, with most of it located in the Vaca Muerta formation in the Neuquén Basin. The general elections will be held on 25 October.

If you need any assistance or advice in the region or for more information about upcoming events, please contact: Clarisse Rocha, Head of Americas Contact: clarisse.rocha@the-eic.com

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

@TheEICEnergy

October 2015

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 +603 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

www.the-eic.com Follow @TheEICEnergy Join the EIC LinkedIn Group ‘Energy Industries Council’

energizing your business