EIC Monthly News September 2012
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The EIC Chief Executive
The Chief Executive Welcome to the September edition of the EIC Monthly News. At the time of writing, during such a successful Olympic games, I have just come from the magnificent Lancaster House in London, where it has been my privilege to attend the UKTI Global Business Summit on Energy, which did such an excellent job in bringing together global business leaders from the energy sector, with leading members of the UK Government, including the Prime Minister, to showcase the extraordinarily high level of expertise, engineering capability and technology available in the UK. Against the backdrop of such outstanding achievement by members of team GB in the Olympics, attendees at the Summit heard presentations from Cabinet Ministers and Directors of the major oil companies and utilities, about the significant contribution which the UK energy sector makes not only to the UK economy but also to the development of major energy projects worldwide. In spite of global economic challenges, it was good to hear the outstanding success story of the UK energy sector and the major business opportunities, which present themselves across the full spectrum of the energy industries for EIC members worldwide. With the development of international opportunities in mind, I am delighted to announce that Aimee Marsh is joining the EIC as Executive Director, North and Central America. With a career background in ocean and marine technology, Aimee brings a wealth of experience in the offshore oil and gas business and we look forward to her contribution in developing our Houston office in the years ahead. On to Singapore, where September sees the EIC moving to an excellent new office located in the Centennial Tower at the heart of one of Singapore’s most prominent business areas. Providing first class training, presentation, meeting room and hot-desking facilities, the new Singapore office will continue to offer invaluable support services for EIC global members in the region. In Brazil, we look forward to Rio Oil and Gas taking place from 17 to 20 September, where the EIC is hosting the UK Pavilion with 33 UK exhibitors of which 30 are EIC members. Our Regional Manager for South America Clarisse Rocha, will also be presenting at Rio Oil & Gas this year on: “The Brazilian Oil & Gas market as a scenario for Internationalisation”. And finally back home to the UK again where key dates for your diary if you have not already booked are the EIC Annual Dinner on 25 October at the beautiful Royal Courts of Justice in London, followed by EIC Connect Oil & Gas 2012 on 27 and 28 November in Manchester. I wish you continuing business success in 2012. Ian Stokes
Content
September 2012
The Chief Executive
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Business Information
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National Events
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EIC Consult
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Training Services
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New Members
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Members News
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UK & Overseas Events
14
Exhibitions/National Events 15 Delegations & Exhibitions 16 UK News
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Middle East News
21
Asia Pacific News
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China News
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North America News
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South America News
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EIC Business Information
Business Information Saudi Arabia’s recent petrochemicals boom Saudi Arabia has over 265 billion barrels of proven oil reserves and 8.2 trillion cubic metres of gas. With its 11 million barrels per day oil production capacity, it is the world’s largest oil producer. The wealth from this oil and gas production also comes with some drawbacks, such as the fact that the industry does not create a lot of job opportunities and the country’s income is exposed to the volatilities in the oil price. Saudi Arabia has been trying to overcome these issues by diversifying its economy. Expansion of the petrochemicals industry is a result of this move. Saudi Arabia has a significant cost advantage over global competitors due its oil and gas output being used as feedstock. Another advantage it has is its proximity to the markets of Asia and Europe. History Even though it had huge oil and gas reserves it wasn’t until the late 1970s that Saudi Arabia started to build its petrochemical industry, until then the country was a net importer of petrochemical products. To date, according to the Saudi Arabian General Investment Authority, Saudi Arabia is the world’s 11th largest petrochemical supplier and it accounts for 7 – 8% of total supply. SABIC (Saudi Basic Industries Corporation), Saudi Arabia’s main player in the petrochemical industry, was established in the late 1970s. The company is now one of the world’s largest petrochemical companies with 18 affiliates and a presence in 40 countries. It is 70% owned by the Saudi government. Saudi Aramco, which started as an oil exploration and production company in the 1930s is now a vertically integrated company with assets in the refining and petrochemicals sectors. Aramco started to build up significant refining capacity in the 1980s, however its petrochemical ventures and integrating its refineries with petrochemical plants is a more recent strategy. Private companies started to enter the market in the mid 90s as part of the government’s plan to reduce the dependence on the petroleum sector. There are around 15 listed petrochemical companies in Saudi Arabia today. Safco, Saudi Kayan, Petro Rabigh, Yansab, Tasnee, Sipchem, Sahara and Chemanol are some of them. Recent Developments Saudi Arabia’s new ambition is moving it away from being an exporter of basic petrochemicals to become an exporter of secondary and more complex petrochemicals. It is strongly believed that moving further down the value chain and producing more speciality petrochemical products is the key to maximising the value of its natural resources. Recent projects such as the US$20 billion Sadara project (an Aramco and Dow Chemicals joint venture), the US$7 billion expansion of the Petro Rabigh refinery and petrochemical complex (an Aramco and Sumitomo joint venture) and the US$3.4 billion Kemya project (a Sabic and ExxonMobil joint venture) are all part of this plan. www.the-eic.com
According to a government advisor, by 2016 Saudi Arabia’s cumulative petrochemical projects are expected to be worth around US$150 billion. This year so far has been extremely active with the awarding of nearly US$11 billion in contracts. Issues Ahead There are several issues that Saudi Arabia needs to tackle to make this ambitious move a success. Gas feedstock capacity needs to be increased. The large projects that have gone ahead so far have been allocated all the currently available natural gas feedstock. This cheap feedstock provides a huge competitive advantage to these projects. For future projects to go ahead the availability of uninterrupted gas feedstock supply needs to be increased. Therefore the exploration of new gas reserves in the Kingdom is on-going. Supply of skilled professionals is very important to make the most of the advantages resulting from the competitive feedstock. One of the main reasons for the investment in the petrochemical industry was to diversify the economy and create jobs; however the lack of skilled labour, which is especially important for more complex production plants, is one of the biggest hurdles. So far this issue has been solved by hiring experienced expatriates; however this is not sustainable in the long term and conflicts with the aim of creating jobs for the local population. Saudi Arabia is trying to overcome this issue by the so called Saudisation programme, where a fixed percentage of a private company employees consists of Saudi nationals. The output is primarily exported to developing markets in Asia, mainly China and India. Therefore future profitability is heavily reliant on the growth rate of these markets. Markets like China and India are buying the primary products and using them to build the more complex products which they then export to Europe and North America. China is currently one of the biggest markets for primary petrochemical products but it is building its own capacity and setting itself up to become a competitor to the Saudis. But at the same time Saudi is moving down the product chain and producing more value added products and its target markets will change and it should not be so reliant on these developing markets. Summary Saudi Arabia has always possessed great opportunities for the oil and gas supply chain. However, with its ambition to transform itself to a strategic hub for the petrochemical industry and the government’s commitment for growth and diversification, today it is even more attractive to suppliers of the industry. Ceyda Celik Conroy Business Information Manager The EIC (Middle East) Tel +9714 299 3945 Email ceyda.conroy@the-eic.com
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EIC National Events
What’s happening in the Conference?
National Events
The adjoining conference allows major oil and gas companies to highlight key issues to the supply chain on the challenges faced in the global oil and gas industry today. Ideally suited to CEO’s, Managing Directors, Business Development Directors, Heads of Strategy etc from UK SME’s who are keen to shape their long term business plans in the following areas: Tuesday 27.11.2012 Morning Session (10am – 11.30am) Areas in New Exploration: preparing the supply chain for future opportunities, eg in East and West Africa. Tuesday 27.11.2012 Afternoon Session (2pm – 3.30pm) Unconventional Gas: educating the UK industry on the facts, disperse some of the concerns and highlight opportunities for the coming years. Wednesday 28.11.2012 Morning Session (10am – 11.30am) LNG: the future of Australia – an outline of projects and investment in Australia. Wednesday 28.11.2012 Afternoon Session (2pm – 3.30pm) Ultra Deepwater Challenges: focusing on the increased water depth discoveries being made. Whilst all sessions in the main exhibition and conference will be on a first come first served basis, we will ask delegates to register their interest for sessions to allow us to finalise the agenda in due course.
EIC Connect Oil & Gas 2012 Event Preview
EIC Connect this November will bring the world’s largest oil and gas companies face to face with the UK based supply chain, including many of our most successful SME’s. This is our key initiative where major operators and contractors showcase their international high value opportunities in the exhibition hall and help SME’s shape their business towards current and future industry needs in the conference.
Opening Plenary – 9am 27 November 2012 All delegates will be directed to the main conference foyer to network over coffees after collecting their badges and delegate packs from registration. A major operator will host the plenary session before delegates break out into the conference, supply chain presentations and exhibition from 10am.
What’s happening in the Exhibition? The main exhibition consists of a series of workshops where major oil and gas companies present to suppliers with many attending from key overseas markets, including Australia, Russia, USA, Brazil, Vietnam and Indonesia. Speaker companies meet with delegates in the One 2 One area on the day that they aren’t presenting and preregistered delegates will be given the opportunity to book appointments in advance of the event.
Supply Chain Presentations Preview
Forthcoming National Events
Delegates can choose from approximately 4 speaker companies each hour, such as:
Register your Interest to Exhibit EIC Member Pavilion at All-Energy 2013 22 – 23 May 2013 Aberdeen Register your Interest EIC Connect Oil, Gas & Power 4 June 2013 Abu Dhabi Only 2 Stands Remaining EIC Member Group @ Offshore Europe 3 – 6 September 2013 Aberdeen Register your Interest EIC Connect Energy 12 – 13 November 2013 Manchester For further information please contact: Sarah Lansdell, Manager, National Events Tel +44 (0)1642 379 974 Email sarah.lansdell@the-eic.com
Over 70 UK companies will be showcasing their latest products, new technologies and services in the exhibition. www.the-eic.com
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The EIC is the leading trade association for UK companies supplying goods and services to the global energy industries. 5 www.the-eic.com
September 2012
EIC
EIC Consult
NORWAY
Energy Report 2012 Comprehensive, cutting edge information on the Norwegian energy industry. Over 100 pages and 50 tables and graphs provide detailed insight into the upstream offshore sector. Analysis of the 22nd licensing round and full development forecast identifying future market trends and project locations. Includes information on over 170 future and active projects, over 100 offshore oil and gas fields and every discovery in Norway. Includes unique A1 map of Norway’s offshore oil and gas licencing areas, key projects and energy
Targeted, critical analysis of key issues and current events including: • Contracting activity on the Norwegian Continental Shelf • Barents Sea, Norwegian Sea and North Sea forecast and analysis • 170 proposed and under construction projects worth an estimated $215 billion
infrastructure. Price: £950+VAT (non-Members: £1,350+VAT) electronic and hardcopy of the report and map
• Working with Statoil, their supply chain and operations Worldwide • Recent discoveries and future prospects • Norwegian rig market analysis and forecast to 2014
TO ORDER tel: +44 (0)20 7091 8612 email: phil.goddard@the-eic.com 66 www.the-eic.com or visit: www.eic-consult.com
• Oil & Gas, CCS, Renewables and Power
September 2012
EIC Training Services
Training Services
Technical Workshop
An Introduction to Bolted Joint Integrity 6 September 2012 Hydratight, Walsall The bolted joint plays a critical role in assuring the integrity of process plant and structures in industries as diverse as offshore oil and gas, petrochemical plants, refineries and power plants. The workshop will give an appreciation of the importance of selecting joint components, correct assembly, calculation of the correct bolt load from traceable standards, controlled tightening technology and procedures, inspection and breakout procedures, training and competence and data management. The afternoon is split into two sessions. The first session concentrates on how design codes such as how the ASME Boiler & Pressure Vessel Code and EN1591 handle flange-bolting calculations. The second session looks at systems to manage joint integrity and the software tools available to carry out bolt load calculations.
An Introduction to Steam Turbine Technologies 11 September 2012 Dresser Rand, Peterborough Dresser-Rand Company Ltd provides innovative engineering solutions for energy-related industries ranging from power generation to petrochemical processing. The company designs and manufactures steam turbines, gas compressors, gas engine driven CHP systems, specialist gearboxes and special purpose machinery. All of this equipment is supported by an international spares and service division. The company has installed equipment in more than 100 countries around the world. The workshop will include a factory tour for the attendees to learn and understand the process of manufacturing, assembly, quality assurance and testing involved in the delivery of the finished product. The workshop tour will give graduates an appreciation of equipment they may be procuring but may not have seen and will also bring the UK supply chain closer to customers.
Industry Overview
Industry Overview
Technical Workshop
The Fundamentals of LNG 18 September 2012 EIC Aberdeen Liquefied Natural Gas (LNG) is well established and one of the fastest growing energy businesses. A key challenge in developing new LNG projects is to bring together the technical and commercial needs of many stakeholders involved including project developers, EPC contractors, shipping companies, financial institutions, government bodies, traders and regulators. 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. The supply/demand overview provides an understanding of how the industry has developed and the opportunities and constraints on future development.
The Fundamentals of Refining & Petrochemicals 20 September 2012 WorleyParsons, EIC London This course has been designed for managers, engineers, graduates, operators and other personnel who are new or are requiring insight into the refining and petrochemicals industry. The course will provide an excellent overview for people from technical, non-technical and commercial backgrounds, who have limited experience and wish to improve their familiarity with some of the systems and technologies involved. The course will include an introduction to refining, the technology and the future of refining. It will also cover an introduction to petrochemicals, basic petrochemicals, petrochem-refining flow configuration, separation, reaction, major equipment and environment and petrochemicals as a business.
HSE Training
HSE Training
Working Safely 3.2 (IOSH Accredited) 27 September 2012 PHSC Ltd, EIC London Working Safely is for people at any level, in any sector, needing a grounding in the essentials of health and safety. Everyone at work should have an understanding of why they must ‘work safely’ – and this course offers exactly that. The course will cover an introduction to working safely, defining hazard and risk, identifying common hazards, improving safety performance and protecting our environments. There will be an IOSH assessment at the end of the course.
New for October Introduction to IGEM/TD/13 25 October 2012 IGEM, EIC London The course is aimed at individuals involved in or responsible for the design, installation and maintenance of pressure regulating installations and equipment and for those requiring an appreciation of the theory to meet legislative requirements and IGEM/TD/13. Delegates will gain an understanding of the design, installation, commissioning and maintaining concepts for pressure regulating installations requirements to comply with legislation and standards.
For further information on any of our courses, or if you are interested in receiving ‘in-house’ training please contact: ally.leboutillier@the-eic.com www.the-eic.com
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New EIC Members GSP (Grup Servicii Petroliere) is a leading oil and gas services provider. The company operates a fleet including five mobile offshore drilling rigs, a modular drilling rig, ten offshore support vessels of different types, a fleet of technical vessels including a DP3 pipelay barge, the largest heavy lift crane barge in the Black Sea, heavy lift semi-submersible and offshore work and accommodation barge as well as a fleet of heavy duty and inspection class WROV’s, and a 300 MSW saturation diving system. GSP is within the Upetrom Group which has activities in onshore and offshore drilling, oilfield equipment production and design engineering. Upetrom Group has more than 5000 employees and operates worldwide, with representative offices in the UK, Netherlands, Romania, Tunisia, Cyprus, Russia, Dubai and Mexico.
New EIC Members New Global Member
ALE New Road Hixon Staffordshire ST18 0PE Tel +44 (0)1889 272 500 Fax +44 (0)1889 271 750 Email t.killen@ale-heavylift.com Web www.ale-heavylift.com The Nominated Representative is Mr Tim Killen, Commercial Director – UK. ALE delivers a highly tailored, end-to-end service covering every aspect of the handling, transportation and installation of heavy loads, including lifting, transporting, skidding, ballasting, jacking and weighing. ALE serves a range of sectors, including civil, oil and gas, petrochemical, power generation, nuclear, offshore and renewable and has a world renowned R&D facility which is responsible for developing the Mega Jack and the world’s largest land based crane, the AL.SK350, which can lift up to 5,000te. Headquartered in the UK, ALE has more than 20 offices worldwide and is fully compliant with international standards of safety and excellence, including Quality standard ISO 9001:2008 and Environmental standard ISO 14001:2004.
New Primary Member
International SOS (UK) Ltd Building 4, Chiswick Park 566 Chiswick High Road London W4 5YA Tel +44 (0)20 8762 8000 Fax +44 (0)20 8762 8253 Email craig.evers@internationalsos.com Web www.internationalsos.com The Nominated Representative is Mr Craig Evers, Business Development Manager. International SOS is the world’s leading international healthcare, medical assistance, and security services company. They help organisations manage the health and security risks facing their international travellers and expatriates. Every day, millions of International SOS members put their trust in the company to provide solutions that help them wherever they live or travel, 24 hours a day, 365 days a year. Through their worldwide network of assistance centres, clinics, and health and logistics providers, they offer local expertise, preventative advice, and emergency assistance during critical illness, accident, or civil unrest. With over 10,000 employees working in 70 countries, International SOS works in partnership with businesses, governments and non-governmental organisations and offers international standards of medical care.
New Primary Member
Al-Met Ltd Coedcae Lane Industrial Estate Pontyclun Cardiff CF72 9HG Tel +44 (0)1443 220 800 Fax +44 (0)1443 228 199 Email jhurley@almet.co.uk Web www.almet.co.uk The Nominated Representative is Mr John Hurley, Business Development Manager. Al-Met is a specialist manufacturer of precision engineered valve wear parts used in the oil and gas industries. Their products are used in high-pressure choke and flow control valves, designed to regulate flow volumes in extremely demanding applications in the subsea and surface oil and gas industries. Al-Met, which was established in 1985, has developed a leading edge capability in precision machining carbides, high grade stainless steels and super alloys.
New Primary Member
Move One Logistics
Spring Vale Police Station Square Mildenham Suffolk IP28 2ER Tel +971 4438 5300 Fax +971 4447 1850 Email carl.corriveau@moveoneinc.com Web www.moveoneinc.com The Nominated Representative is Mr Carl Corriveau, Head of Logistics. Move One specialises in global project logistic solutions, specifically in frontier and emerging markets. They are dedicated to provide innovative solutions for all projects requirements. From deployment to sustainment, they have over 20 years of local knowledge, expertise and experience to ensure your project’s success. With offices in more than 40 countries covering the Middle East, Central
New Global Member
GSP Offshore UK Ltd 29 Abercrombie Court Prospect Road Arnhill Business Park Westhill Aberdeen AB32 6FE Tel +44 (0)1224 270 346 Fax +44 (0)1224 370 347 Email michael.shepley@gspoffshore.com Web www.gspoffshore.com The Nominated Representative is Mr Michael BleaseShepley, Business Development. www.the-eic.com
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New EIC Members Asia, Africa and Eastern Europe, they are strategically located to support all oil and gas, energy, infrastructure, and government/military projects in these volatile and uncertain markets. Services include: international and domestic logistics solutions; project heavy lift and oversized cargo services; convoy/fleet management; warehousing and equipment staging; rig movements; aircraft/vessel chartering; food and perishables.
New Primary Member
Primetech Global Ltd
93-105 St James Boulevard Newcastle NE1 4BW Tel +44 (0)191 261 5205 Fax +44 (0)191 261 1177 Email gareth.allen@primetech-global.com Web www.primetech-global.com The Nominated Representative is Mr Gareth Allen, Managing Director. A leading technical recruitment provider supplying to the oil and gas, petrochemical, subsea, offshore, renewable and engineering sectors delivering highly skilled individuals or full project teams around the globe. They offer oil and gas recruitment across the full project cycle, including FEED, detailed design, EPC, construction, commissioning, operations and maintenance functions. Specific disciplines include; mechanical, piping, subsea, drilling process, electrical, civil/structural, instrument, QA/QC, health and safety, project engineering/management, materials, inspection, planning cost and estimating, servicing clients ranging from sole supplier and preferred supplier agreements through to ad-hoc requirements. Supplying to the UK, Scandinavia, Middle East, Africa and Australia.
New Global Member
Origin Logistics Leestone Road Sharston Industrial Estate Sharston Manchester M22 4RB Tel +44 (0)161 492 1772 Fax +44 (0)870 460 5825 Email craig.alexander@originlogistics.com Web www.originlogistics.com The Nominated Representative is Mr Craig Alexander, Projects Director. Origin is able to offer tailor made bespoke solutions for every possible scenario. Should your cargo appear to be too heavy to lift or the size too extreme to transport by conventional industry standard methods then Origin will always endeavour to find the best possible solution to meet your requirements and any deadlines that you are working to. Origin offers: truly global freight solutions from collection to delivery for all non-standard shipments; project cargoes can be of any gauge; full cross trade services, not just UK exports i.e. Dubai to Singapore; global online Track and Trace system, updated daily; complete transparency of pricing; receiving and stevedoring services at all UK ports and ICD’s; a global network of port handling agents, all with expert knowledge in the handling and delivery of out of profile cargoes. Origin is now accepted as one of the most experienced providers of turn-key, project and specialised services in the UK.
New Primary Member
Theon Ltd
30 Abercrombie Court Prospect Road Arnhall Business Park Westhill Aberdeenshire AB32 6FE Tel +44 (0)1224 907 444 Email margaret.mcmillan@theonltd.com Web www.theonltd.com The Nominated Representative is Miss Margaret McMillan, Business Development Manager. Theon is an independent oil and gas front end consultancy providing technical expertise to international operators and contractors in field development, engineering and operations management. They support clients in petroleum engineering, project management and feasibility evaluation for greenfield and brownfield developments. Theon covers front end engineering skills for subsea, pipelines and topsides facilities including process, flow assurance, technical safety, maintenance and reliability. For existing facilities they assist clients in operations management including commissioning, start up, operational readiness assurance and performance excellence. In addition their substantial pool of resources enables them to supply interim project personnel across a wide range of disciplines to integrate with the client’s team. Theon has a team of best in class experts that conduct project management services, peer reviews, independent verification support and design reviews to enable challenge of design purpose and fitness throughout the project lifecycle. They perform engineering studies for feasibility, conceptual, pre-feed and decommissioning phases for onshore and offshore projects.
New Primary Member
PPI Engineering Ltd 44 Rose Lane Norwich Norfolk NR1 1PN Tel +44 (0)1603 305 504 Fax +44 (0)1603 305 506 Email bob.branscombe@ppi-engineering.com Web www.ppi-engineering.com The Nominated Representative is Mr Bob Branscombe, Commercial Manager. PPI Engineering specialises in the supply and support of rotating electrical machines and associated equipment. Their goal is to provide round the clock assistance and a complete technical and commercial support package to their customers. PPI can provide the following products and services: engineering support and expert advice for product design and application engineering; site services of diagnostics, re-engineering, repair and commissioning of electromechanical equipment; operation and maintenance support, expediting and inspection services; and specification and supply of new equipment. www.the-eic.com
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EIC Members News
Members News
Jan Ward, CEO for Corrotherm International said: “We’re expanding to maximise our opportunities in the market place and continue to grow as a company. We’re looking forward to expanding into these new markets, getting to know our new enthusiastic staff and being able to offer our customers a wider range of stock”. Through their new offices, Corrotherm International will be able to supply a wide range of product forms, which will enable them to supply complete packages of nickel alloy pipe, fittings, flanges, plates, bars and welding consumables. In addition, they are able to accommodate small quantities and one-off items made to order in any product form in nickel alloys – and they are able to do all of this through any of their offices worldwide. Please visit: www.corrotherm.co.uk
AVEVA has announced the release of a new business paper for the process and power industries highlighting the need to maximise the efficiency of plant design. Following the announcement of its vision for ‘The Future of Plant Design’, AVEVA is sharing its industry insight to help EPCs reduce project costs while improving quality. AVEVA’s revealing business paper introduces the concept of a design spiral as a way to characterise the plant design process and identify how efficiencies can be made. Optimising design efficiency, AVEVA argues, is one essential step in moving closer to the ultimate goal of maximum project performance. “We understand the uniqueness of the markets we serve,” said Dave Wheeldon, CTO and Head of Engineering & Design Systems, AVEVA. “You can’t produce plants in volume in the same way that they do in the manufacturing industry. It’s not about economies of scale; you must optimise each bespoke process. As major capital projects are increasing in size and complexity, the market is embracing joint ventures and sub-contractors to manage risk. This places the project team under enormous pressure to deliver work that is co-ordinated and meets contract obligations to avoid high penalty clauses. We have seen how improved design efficiency provides an essential and significant contribution to the supply chain”. Focusing on six key areas, including openness, integration and compliance, the paper highlights what AVEVA anticipates will be the main factors driving plant design efficiency. You can download the new business paper on the ‘The Future of Plant Design’ website. Alternatively, contact AVEVA on: Tel +44 1223 556 655 http://futureplantdesign.aveva.com
Damper Technology Ltd (DTL) is pleased to announce the recent acquisition of the trade and assets of CPH (Thurmaston) Ltd. The site of the offices and fabrication facilities operating from Silverdale Drive, in Leicester, UK will now be operating as a dedicated manufacturing plant for Damper Technology Ltd. CPH has been manufacturing dampers on a subcontract basis for DTL for the last 10 years. The integration of the fabrication facility will take place over the coming months and is part of DTL’s growth plans to enhance their reputation as the UK’s leading industrial damper supplier, by creating their own specialist, efficient and sustainable manufacturing operation which will add value to the company and enable them to promote a higher level of production control. Former CPH Directors Martyn Goode and Adrian Goode have taken up the positions of Manufacturing Manager and Materials, Quality & Logistics Supervisor respectively. DTL’s Operations Director, Gary Tunnicliffe will be taking overall responsibility at board level. Managing Director Mark Hancock said: “The acquisition is expected to result in greater efficiencies and will significantly increase our ability to meet customers’ expectations by having our own manufacturing operation. CPH has been our main fabricator for many years and we have a strong working relationship with them that will see us into future growth and development”. Established in 2001 DTL has a background in the Damper industry reaching back to 1965. Since conception DTL has continued to build on a growing worldwide reputation for quality, innovation, product reliability and cost effectiveness, becoming one of the world leaders in the damper market place. For more information visit: www.dampertechnology.com
Nickel alloy specialist Corrotherm International is expanding their business’ global reach by opening up new branches around the world. They have expanded into brand new markets with a new office in Busan, South Korea and have also added to their Middle East coverage by opening an office in Abu Dhabi to complement the existing one in Dubai. Both new branches are already making inroads into their market places, with enthusiastic staff on hand to help customers new and old. The Middle East will benefit further from a new Corrotherm office opening in Saudi in the near future, which will encourage even greater growth in this market place. As well as increasing the amount of offices globally, Corrotherm International has relocated their American offices from Portland, Ohio to Houston, Texas.
To submit articles to the Members News section, please send no more than 300 words, and a good quality photograph (preferably 300 dpi) to richard.cheatle@the-eic.com or newsdesk@the-eic.com. Copy deadline is the first of the month for the following month – ie by 1 October for the November issue.
www.the-eic.com
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EIC Members News Hydratight’s joint-integrity experts contributed significantly to the formulation of the new courses, as key members of the Step Change/ECITB review committee. The company fully revised its own course materials, procedures, equipment and training rigs to meet the new standards in advance and the first recruits were able to undertake the new courses within a week of their introduction. “The pressure on companies to do the job right first time and make a major impact on hydrocarbon leaks has never been greater,” said Hydratight’s Technical Competency Leader, Jason Barnard. “Step Change and the ECITB wanted to bring the courses right up to date to make sure trainees were getting the best possible information, and we were happy to be involved because or our expertise in leak reduction and joint integrity. We are very pleased the new courses are proving up to the task they have been set and are increasing competency standards”. Hydratight’s three training academies are all ECITB and MJI approved training and test centres, with expert trainers and examiners at each centre. The company has offered ECITB bolting courses since 1994 and has trained thousands of newcomers to the industry. The new technical standards – MJI10, 18 and 19 – replace the former ECITB TECSkills PF10, PF18 and PF19 units and cover hand and hydraulic-torqued bolted connections; hydraulically-tensioned bolted connections, and the general dismantling, assembly and tightening of bolted connections respectively. A previous logbook system has been replaced by workbased task assignments, normally completed three to twelve months after an initial training course. The trainee can then take the new ECITB approved technical test (TMJl 10, 11, 19 and 20) based on each of the courses. Employers use the courses to ensure their workforce has the necessary skill, ability and knowledge to carry out critical bolting safely. Trainees receiving the certificate of achievement gain a qualification recognised by many employers. Please visit: www.hydratight.com
Hydratight
Safety systems specialist Hima-Sella has completed a recruitment drive in order to meet an increasing demand for the company’s engineered solutions in several of its key sectors (including rail, oil and gas, chemical and nuclear). In total, six new full-time employees have joined HimaSella in recent weeks: Richard Wagstaff and Jay Sampat have joined as Project Engineers to serve the company’s rail sector activities; Michael Marsh has been recruited as a Project Engineer (Controls); Alan White has been appointed as Sales Application Engineer (Process Safety); and Richard Easton has come on board as Trainee Technician (Technical Support). This takes the company’s head count to 97. Eddy Turnock, Hima-Sella’s Sales & Marketing Director commented: “Hima-Sella is enjoying year-onyear growth, and we are increasingly being approached to undertake projects for which we design and implement engineered solutions, as well as project manage parts of the supply chain, as opposed to traditional build-to-order work. Our new recruits have therefore joined a wellrespected and professional company at what promises to be a very exciting time”. Visit: www.hima-sella.co.uk
Hydratight’s expertise in joint integrity is making the company the go-to powerhouse in training. Since the courses were introduced at the end of 2011 hundreds of trainees have undertaken the company’s new ECITB approved training courses in mechanical joint integrity. Hydratight’s three centres also delivered almost 60% of the technical testing involved in the revised courses. The ECITB’s new Mechanical Joint Integrity (MJI) courses were devised to update materials, standards and methods, and came into effect in October 2011. The major uptake followed Step Change in Safety’s call for new qualification standards. Step Change and the ECITB developed new courses and tests as part of an industrywide drive to reduce hydrocarbon leakage by 50%. Step Change backed up its call by publishing new guidelines, Mechanical Joint Integrity – The Route to Competence Guidance, officially released, and a major discussion point, at the Step Change hydrocarbon release seminar in March. www.the-eic.com
Mech-Tool Engineering, the global fire and explosion and protection products manufacturer, is launching a bespoke design consultancy service using elite tools to meet clients’ needs. Mech-Tool has developed systems and tools during the course of the last 35 years, helping clients to achieve highly accurate designs and cost projections at the earliest stages of projects in the fields of fire and blast protection. Now, the company is aiming to recruit two new structural design engineers to supplement and begin to develop its existing Darlingtonbased design team, which is led by Alan Mather. The result will be a service which can be utilised either on its own or alongside Mech-Tool’s business streams, which develop modular and fire and blast protection products for high hazard industries, such as the oil and gas sector. Mech-Tool already employs 170 people across its operations in Darlington and Middlesbrough, and has recently announced plans to develop a growing presence in the Aberdeen market. 11
September 2012
EIC Members News Alan, a Chartered Structural Design Engineer who has been with Mech-Tool for four years said: “Mech-Tool’s experience lies in structural design for blast conditions, and we have developed elite tools to analyse these, at times, complex structures to withstand a unique set of blast and fire conditions. “These tools are a culmination of our in depth expertise and knowledge, and provide the very best in accurate calculations. Our design consultancy service aims to help our clients with any blast or fire-related problems, ranging from interpretation of blast study reports which includes applicable magnitude, pulse duration and frequency, through to basic design parameters such as wall weights and depths for feasibility studies. “This leads onto deflection and connection details for FEED studies and ultimately to detailed design packs, suitable for the formation of manufacturing drawings, GA’s and submission to 3rd party verifiers. The benefits to the client are speed, accuracy and credibility, which when combined, lead to cost savings. Running the service predominantly out of our Darlington facility gives us the advantage in terms of the rates we are able to offer”. For more information visit: www.mechtool.co.uk
The Norwegian oil and gas industry is booming according to the latest salary survey conducted by Oil and Gas Job Search and Hays Oil and Gas. The guide was compiled from over 14,000 participants in 53 countries and provides data on average salaries, day rates and benefits for 20 specific industry disciplines. The guide highlights that Norwegian based oil and gas professionals are being paid some of the highest rates in the world with an average salary of NOK1.07 million per year; 125% increase on the worldwide average of NOK475,000. Salaries for imported labour average NOK740,000. Duncan Freer, Managing Director of Oil and Gas Job Search commented: “The number and value of projects in the North Sea is currently at an all-time high. This significant level of investment means that there has never been a better time to work in the oil and gas industry”. Employer confidence has also seen a large increase with 26.7% extremely positive about the current market: up from just 9.7% in 2011. Three quarters of all employers expect staffing levels to increase in the next 12 months. Freer continued: “We are experiencing a growing number of professionals using our services in Norway. This level of activity has led to us enhancing our market presence. The next step in this process will be exhibiting at ONS in Stavanger on 28 – 31 August”. A free copy of the salary guide can be downloaded from their website or a copy can be picked up at Hall J, Stand 980/20 at ONS. For more information visit: www.oilandgasjobsearch.com
MICROPACK – globally recognised experts in hazard detection technologies and innovators in the design and manufacture of optical flame detectors, is pleased to announce the launch of their latest Visual Flame Detector in the FDS range; The MICROPACK FDS300. The new flame detector provides all the benefits of MICROPACK’s ‘True Flame’ detection technology, with an unrivalled field of view and an even greater flame sensitivity. The new levels of sensitivity are achieved without affecting the detector’s superior false alarm immunity and its ability to detect fires in the presence of sunlight, rain, fog and hot objects. MICROPACK’s FDS300 is designed to detect a 0.1m2 hydrocarbon pool fire at up to 60m, within a 110° cone of vision, in both indoor and outdoor applications. According to Adrian Lloyd, Director of the USA operations: “The FDS300 boasts a much longer detection range than conventional flame detectors, thus providing our customers substantial savings in installation costs”. The sensitivity of MICROPACK flame detectors are not affected by water on the optics, and are not blinded by contamination typically found in offshore environments. MICROPACK detectors are designed to easily interface with all of the major Integrated Control and Safety Systems (ICSS) along with any FM approved, conventional fire alarm control panel. The technology advancements of Visual Flame Detection over conventional radiant energy type flame detectors is fully proven, with thousands of devices installed in some of the harshest environments in the world, without nuisance alarms. What was once considered new technology is now at the forefront of advanced fire detection practice, with a service history that stretches back over fifteen years. Please visit: www.micropack.co.uk www.the-eic.com
The unrivalled performance of the Rotork K-TORK vane type valve actuator has solved a difficult flow control application found in many coal-fired power plants – highpressure bottom ash spray valve control. High-pressure spray water is used to sluice bottom ash and pyrites from the boilers’ hopper bottoms and to carry the ash out of the plant. The valves used are typically ANSI Class 300 double-offset high-performance butterfly designs ranging in size from 3” to 12”, automated with double-acting actuators. They cycle from four to ten times per day and discharge to atmosphere, creating a very high pressure drop. The flow media is re-circulated ash water that is abrasive and flows at pressures between 400 and 500psi. In plants owned by AEP, Duke Energy, Luminant Generating and other utility companies around the world, K-TORK actuators have provided over 10 years of maintenance-free service whilst preserving the life of the valves and valve seats. Among the challenges, it is imperative that the valves close fully and with zero leakage in a high pressure drop state. If the valve disc moves even slightly from the seat, the abrasive, high-pressure water will ‘wire-draw’ or cut the butterfly valve seat. Traditionally, rack-and-pinion or scotch-yoke actuators have been used in this application, but ‘slop’ or hysteresis in the rotary-to-linear conversion allows for the pressure in the pipe to move the disc from the seat, often causing premature failure. 12
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EIC Members News Annemarie Shotton, Technical Product Manager at Saint-Gobain Isover commented: “With Isover Ultimate™ technology we can offer insulation which is lighter and thinner with no compromise on quality or performance. It has superior thermal, acoustic and fire performance benefits over conventional products, ensuring a safe working environment while reducing heat loss and environmental emissions. It enables users to improve process economy and efficiency and payback can be as little as four months in some cases. Isover Ultimate™ can be transported and stored in higher quantities due to its high compressibility and is also easier to cut, handle and install, meaning faster fitting times and potentially reduced shut down periods”. The benefits of Ultimate™ technology are demonstrated within the Isover Ultimate™ Tech range designed for permanently high temperature operation, to meet all of the expansion, vibration and thermal stress demands associated with modern industrial processes, making it an ideal solution for the power generation sector. Isover Ultimate™ Tech wired mats and slabs are non combustible and have a Euroclass A1 fire rating – the highest possible rating. For more information please visit: www.saint-gobain.com
Rotork
The problem becomes more acute when multiple valves are leaking, lowering the available back-pressure at the header, which makes it difficult or impossible to move the ash from the boiler. When assembled to the valve with a ‘No-Play’ coupling, the K-TORK actuator has zero lost motion, ‘slop’ or hysteresis. The one-piece vane and drive shaft cannot be back-driven and will hold the disc of the valve firmly in place. Additional challenges include the location of the valves on a manifold at the bottom of the boiler where space is critical and plant air can be poor quality. K-TORK provides the smallest torque-to-size ratio and the double-opposed lip seal design is forgiving to dirty or contaminated air. Also, the low-friction performance of K-TORK provides a speed-controlled, smooth valve operation, eliminating the risk of water hammer created by the high pressure drop. Finally, longer run time between shutdowns demands increased reliability from the equipment in these critical applications. In particular, as the number of plant maintenance personnel has decreased, actuators that reduce maintenance (seal replacement) time and work orders have a direct payback to the owner, especially when valve life can be significantly increased through improved actuator performance. Visit: www.rotork.com
With the launch of a new foundation tensioning tool designed specifically for the European wind market and the appointment of Hannelore Khwaja as its dedicated Business Development Manager for Germany, Austria and Switzerland, bolt tightening specialist Tentec is demonstrating its commitment to this important marketplace. Tentec will have an increased presence at Husum Energy 2012 and its bolt tensioning equipment, including the new foundation tool, will be displayed on a large, custom-built booth #8A14 at the show from 18 - 22 September 2012. The new tensioner has been developed to fit the latest designs of European foundation bolting systems and features increased stroke, spring return and each tool is supplied complete with a fitted gearbox. With an experienced in-house engineering team, Tentec is one of the few companies able to design, manufacture and supply bolt tightening tools tailor-made to meet specific requirements, all within the time constraints demanded by the industry. In addition to its single bolting tools, Tentec has designed, manufactured and supplied Multi-Stud Tensioning (MST) tools that enable a number of bolts to be tightened simultaneously, improving productivity. Applications for these MST tools include wind turbine gearbox manufacturers. And finally, Tentec will be introducing its recently launched Engineering Construction Industry Training Board (ECITB) certified bolt training courses and qualifications for the wind and renewables industry. Tentec’s experienced trainers can offer the courses either at the Tentec training facility in the UK or onsite – anywhere in the world. For more information please visit: www.tentec.net
Saint-Gobain Isover, leading developer of sustainable insulation solutions to protect both the natural and built environments, has launched Isover Ultimate™ Tech, a groundbreaking new mineral wool insulation range that takes high temperature industrial insulation to a new level. Isover Ultimate™ uses innovative technology to deliver a product range with the handling and performance benefits of glass wool and the outstanding fire resistance of stone wool. The product range is easier to handle due to being a thinner, lighter solution, but still offers excellent thermal, acoustic and fire performance for demanding applications in buildings, industrial installations as well as the marine and offshore markets. www.the-eic.com
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EIC UK & Overseas Events
UK & Overseas Events August 2012 24 Corporate Entertainment: EIC Scotland Golf Day
Downfield Golf Club, Dundee
September 2012 6 Business Presentation: Opportunities with Dana Petroleum Hilton Treetops Hotel, Aberdeen 6 Technical Workshop: Introduction to Bolted Joint Integrity Hydratight, Walsall 10 Industry Overview: Fundamentals of Oil and Gas Proclad Academy, EIC Dubai 11 Technical Workshop: Introduction to Steam Turbine Technologies Dresser Rand, Peterborough 12 Business Presentation: Opportunities with AMEC Crowne Plaza, Abu Dhabi 13 Business Presentation: Opportunities with Doosan Power Systems Doubletree by Hilton, Aberdeen 14 Business Presentation: Opportunities in Saskatchewan, Canada Aberdeen 17 Business Presentation: Opportunities in Saskatchewan, Canada EIC London 18 Industry Overview: Fundamentals of Liquefied Natural Gas eMJAY LNG, EIC Aberdeen 19 Corporate Entertainment: Rio Samba & Gas 2012 Rio de Janeiro 20 Corporate Entertainment: Mid-Autumn Festival Networking Tea EIC Singapore 20 Industry Overview: Fundamentals of Refining and Petrochemicals WorleyParsons, EIC London 21 Cultural Awareness: Rio Open Office Day EIC Rio 25 Sector-Based Forum: Renewables with E.ON Scroby Sands Windfarm, Gt Yarmouth 26 Sector-Based Forum: Upstream The Underwater Centre, Fort William 27 Business Presentation: Opportunities with GSA & Fabricom Middlesbrough Football Club 27 HSE Training: Working Safety 3.2 (IOSH Accredited) EIC London October 2012 2-3 Business & Management: The Professional Presenter EIC Rio 3 Technical Workshop: Introduction to Offshore & Subsea Valves BEL Valves, Newcastle 4 HSE Training: Introduction to the Pressure Equipment Directive Nuvia Ltd, Warrington 8-9 Management Course: The Experienced Manager Inspirit Training, EIC London 11 Management Course: Negotiation Skills Atherton Training, EIC London 16 Management Course: Time Management Resolution Training, EIC London 18 Business Presentation: Opportunities with Aquamarine Power Edinburgh 18 Technical Workshop: Introduction to Nuclear New Build EIC London 19 Technical Workshop: Introduction to Shale Gas IBC Global Academy, EIC London 23 Sector-Based Forum: Gas Treatment, Processing & Storage The Thistle, Haydock 24 Management Course: Why do we need Contracts? EIC London 25 Corporate Entertainment: EIC National Dinner 2012 Royal Courts of Justice, London 25 HSE Training: Introduction to IGEM/TD/13 EIC London 30 Technical Workshop: Introduction to Control Valves APIMEC, Rio de Janeiro November 2012 1 Technical Workshop: Introduction to Subsea Systems ESD Simulation Training, EIC London 2 Technical Workshop: Introduction to FPSOs ESD Simulation Training, EIC London 6 Industry Overview: Fundamentals of Power E.ON UK, Nottingham 7 HSE Training: Introduction to ATEX Directives Baseefa, Derbyshire 8 Industry Overview: Fundamentals of Oil and Gas Costain, Manchester 9 Corporate Entertainment: Middlesbrough v Sheffield Wednesday Middlesbrough Football Club For further information on UK & Overseas Events and Training please contact: ukevents@the-eic.com
www.the-eic.com
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EIC Exhibitions & Delegations/EIC National Events
Exhibitions & Delegations 2012
Status
17 - 20 September Rio Oil & Gas Rio de Janeiro Sold Out 7 - 11 October Overseas Delegation to Egypt Booking Now 14 - 19 October Overseas Delegation to Peru Booking Now 11 - 14 November ADIPEC Abu Dhabi Sold Out 18 - 23 November Overseas Delegation to Malaysia Booking Now 27 - 30 November Offshore South East Asia (OSEA) Singapore 1 Stand Left 9 - 14 December Overseas Delegation to USA Power Booking Now
2013 19 - 24 January Overseas Delegation to Libya Register your Interest 2 - 7 February Overseas Delegation to Kurdistan Register your Interest 17 - 22 February Overseas Delegation to Ghana Booking Now 20 - 22 February Australasian Oil & Gas (AOG) Perth Booking Now 11 - 13 March Middle East Oil & Gas Show (MEOS) Bahrain Booking Now 19 - 21 March CIPPE Beijing Booking Now 6 - 9 May Offshore Technology Conference (OTC) Houston Sold Out 5 - 7 June Oil & Gas Asia (OGA) Kuala Lumpur Booking Now 11 - 14 June Brasil Offshore MacaĂŠ Booking Now tbc June Overseas Delegation to Russia Register your Interest tbc July Overseas Delegation to Australia Register your Interest tbc Overseas Delegation to Indonesia Register your Interest
For further information on Exhibitions & Missions please contact: events@the-eic.com
National Events
2012 27 - 28 November EIC Connect Oil & Gas Manchester
Status Book your Delegate place online
2013 22 - 23 May EIC Member Pavilion at All-Energy 2013 4 June EIC Connect Oil, Gas & Power 3 - 6 September EIC Member Group @ Offshore Europe 12 - 13 November EIC Connect Energy
Aberdeen Abu Dhabi Aberdeen Manchester
Register your Interest to Exhibit Register your Interest Only 2 Stands Remaining Register your Interest
For further information on National Events please contact: nationalevents@the-eic.com
Overseas Delegation to Egypt 7 – 11 October 2012
Cairo & Alexandria BOOKING NOW! Tel +44 (0)20 7091 8600 Email events@the-eic.com www.the-eic.com
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September 2012
EIC Overseas Delegations & Exhibitions
Overseas Delegations Overseas Exhibitions Overseas Delegations are designed to enable the UK supply chain to target revenue opportunities in a supportive business environment.
The EIC has recently launched the UK National Pavilion at both Oil & Gas Asia and Brasil Offshore 2013. Priority booking is available for EIC members.
Overseas Delegation to Malaysia 18 – 23 November 2012 Kuala Lumpur, Malaysia Malaysia holds proven reserves of approximately 5.8 billion barrels of oil and 2.4 trillion cubic metres of gas. With 133 active and future projects, the current project value in Malaysia is US$224,247 million. With Petronas’ investment of US$12 billion over 30 years and recent projects involving chemical enhanced oil recovery (CEOR) technologies, the life of 13 oil fields is expected to be extended beyond 2040. Petronas has also made a move to develop a US$20 billion Refinery and Petrochemicals Integrated Development (RAPID) project in Johor which includes petrochemical projects developed by major oil and gas players, a LNG receiving terminal and power plant. Malaysia is one of the few countries in the region considering a nuclear power plant to ease future power shortage. In the shorter term, the Energy Commission is conducting new IPP power projects which will add another 3000MW to the country by 2016. Companies that will be approached for meetings in Kuala Lumpur are as follows: Petronas; Petrofac; Shell; Aker Solution; Technip; MMHE; Foster Wheeler; WorleyParsons; DPS Bristol; Sapura/Kencana Oil & Gas; JP Kenny (Wood Group); Murphy Oil & Gas; Dialog; Hess (Carigali-Hess) and Toyo Engineering. (Source for figures: EICDataStream)
Oil & Gas Asia (OGA) 2013 5 – 7 June 2013 Kuala Lumpur, Malaysia The 14th Asian Oil, Gas & Petrochemical Engineering Exhibition is sure to be a busy show following the record breaking attendance in 2011 of 8,161 visitors. Petronas, the national oil company, manages Malaysia’s oil and gas assets through production sharing contracts with other oil firms. Malaysia is rich in oil and gas reserves, competing with its ASEAN neighbours. Brasil Offshore 2013 11 – 14 June 2013 Macaé, Brazil Petrobras recently announced its business plan for 20122016, with a $236.5 billion investment plan, and a long term aim to at least double its oil production by 2020. Huge investments are to be made in E&P, refining and transport. Macaé, the hub of the local oil and gas industry and known as Brazil’s ‘City of Oil’, is home to Petrobras’ business unit for the Campos Basin, an area responsible for more than 80% of national oil production. Relevant players in the industry, such as Halliburton, Schlumberger, Transocean, Aker and Cameron also maintain operational bases in the city, which has more than 3500 companies linked to the oil and gas sector. The exhibition brings together key personnel within engineering, operations and procurement providing a unique opportunity to suppliers of goods and services worldwide.
Overseas Delegation to USA Power 9 – 14 December 2012 Orlando, Florida The United States of America is the largest producer of electricity in the world. With over US$1 trillion of new nuclear projects alone to be developed globally, and electricity generation set to increase by over 80% in the next 25 years, there are clearly a number of high value projects with significant opportunities for the UK supply chain. Delegates will have the opportunity to attend POWERGEN International 2012, taking place in Orlando from 11 – 13 December. Covering trends, technologies and issues facing the generation sector, Florida will play host to many decision makers and showcase the world’s biggest and best power projects. There will be plenty of business, networking and learning opportunities for both regional and international power projects throughout the week. The delegation will be introduced to the world’s leading power companies and contractors who will share their procurement practices and key projects to the UK supply chain. Companies that the EIC and UKTI have approached for meetings in Florida include: Florida Power and Lighting/NextEra Energy; Duke Energy Corp; Mitsubishi; NRG Energy; American Electric Power; LS Power; Navasota; Calpine Corp; GE; Competitive Power Ventures and Siemens. www.the-eic.com
To find out more about any of the events listed, please contact the EIC Overseas Events department: Tel +44 (0)20 7091 8600 Email events@the-eic.com
EIC Overseas Delegation to Venezuela, 13 – 18 November 2011
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www.the-eic.com
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September 2012
EIC UK News
News from our UK offices
Sector-Based Forum: Upstream 26 September 2012 The Underwater Centre, Fort William
Forthcoming Events Business Presentation: Opportunities with Dana Petroleum Plc 6 September 2012 Hilton Treetops Hotel, Aberdeen Dana’s ambition is to be a leading oil and gas company in Europe, the Middle East and Africa. They are developing partnerships based on mutual advantage with their communities, suppliers and partners. The diversity of their operations means that they can’t possibly do everything themselves, so the strength, quality and integrity of their supply chain is critical to their success. The speakers are Paul Griffin, Managing Director at Dana Petroleum E&P Ltd and Graeme Urquhart, Group Procurement and Supply Chain Manager. Contact: les.brodie@the-eic.com
Please note that a courtesy minibus will be provided from Aberdeen at no extra cost. The Underwater Centre in Fort William, operating since 1972, is the world’s leading commercial diver and ROV training centre which also offers essential training in subsea tools and techniques. This is the only school to offer all Health and Safety Executive (HSE) approved qualifications in air and mixed gas diver training. The Underwater Centre also provides one of the most comprehensive Remotely Operated Vehicle (ROV) courses run anywhere in the world. In addition, Assistant Life Support Technician (ALST) courses train skilled support staff for the industry. This is the only commercial diving school that offers multi-depth dives right down to 100 metres in a realistic open-sea environment alongside working ROVs. The ROV pilot training includes hands-on ROV flying experience in tidal waters, using industry-specific technology. The unique location and facilities provide genuine knowledge and experience of inshore and offshore conditions. Facilities include three recompression chambers, underwater cutting, burning and welding equipment, hydraulic tools, testing equipment, various Kirby Morgan diving helmets and underwater cameras providing the most industry-like experience and the most relevant training possible. This unique centre has agreed to host our Upstream Forum and provide speakers and tour of their unrivalled facilities. The speakers are: Alf Leadbitter, Diver Training Manager, The Underwater Centre; Ali MacLeod, Air Diving Manager, The Underwater Centre and Paul Bury, Head of ROV Training and Operations. Contact: les.brodie@the-eic.com
Business Presentation: Opportunities with Doosan Power Systems 13 September 2012 Doubletree by Hilton, Aberdeen Doosan Power Systems designs and delivers smart energy products and solutions globally to help create a greener future. They build, maintain and extend the life of power plants across the world. From full engineering procurement construction (EPC) contracts for major power projects they also offer a wide breadth of products and services within the fields of power and industry. They harness their global strength and expert local knowledge to deliver fully integrated energy solutions. The speakers are Dr Glen Little, Director Nuclear New Build and Matthew Hunt, CCS Sales Manager. Glen will give a general overview of Doosan Power Systems, current work and opportunities, information about prequalifying for the supply chain and he will go into further details about nuclear opportunities and how potential vendors can get involved in Doosan’s nuclear business. Matthew will then talk about Doosan’s involvement in CCS (Carbon Capture and Storage). Glen and Matthew will be supported by additional Doosan staff. Contact: les.brodie@the-eic.com
Business Presentation: Opportunities with Fabricom GDF SUEZ and GSA 27 September 2012 Middlesbrough Football Club GSA is a process led multidisciplinary engineering consultancy providing engineering design and project management services to the energy, chemical and process industries across the UK. Acquired by Fabricom GDF SUEZ in December 2010, GSA has now established an engineering office in Stokesley. This office has been opened to service key accounts in Teesside and build an engineering capability in the region supported from the Humberside base as and when necessary. This event will begin with an introduction from Fabricom GDF SUEZ and will also include a presentation from Mike Smith, Managing Director of GSA which will give attendees an opportunity to hear of the group’s activities and how the business proposes to work with other regional supply chain companies. Contact: jennifer.hole@the-eic.com
Business Presentation: Opportunities in Saskatchewan, Canada 14 September 2012, Aberdeen 17 September 2012, London Where would you find a single jurisdiction offering a wealth of natural crude oil, natural gas, uranium, potash and coal that also offers innovative technology research and development that is attracting the world’s attention? Rick Musleh, Energy Sector Manager with the Government of Saskatchewan’s Ministry of the Economy, will be in Aberdeen on Friday 14 September following the World Heavy Oil Congress and in London on Monday 17 September to talk about the western Canadian province, its natural resources, the opportunities that exist in its vibrant and growing economy and, most importantly, how to do business there. Contact: sarah.slater@the-eic.com
EIC Newsbriefs – Keeping you up to date on energy news from around the world. Email membership@the-eic.com www.the-eic.com
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EIC UK News Northern Region AGM 27 September 2012 Middlesbrough Football Club Would you like the opportunity to represent your company on the Northern Region Committee and help shape the future direction of the EIC within the region? If your HQ or regional branch is in the Northern Region, you qualify to nominate yourself or a colleague for a place on our regional committee. The Committee meets four times a year (which includes the AGM) at various locations across the region, with representation from a wide range of disciplines. Being part of this group provides you with the opportunity to represent the views of EIC members both in the region and as a whole along with suggesting topics and speakers for presentations and networking events. Discussing market trends and industry news is also part of the meeting along with identifying where and how the regional programme can be enhanced to ensure the needs of all members are being met. Being part of the Committee provides an excellent platform to raise both your personal and company profile, increasing visibility across the EIC membership and the industry as a whole. If you wish to be considered for a place on the Northern Region Committee please contact Helen Doona, Manager, Northern Region: Tel +44 (0)1642 379 972 Email helen.doona@the-eic.com
Corporate Entertainment: EIC National Dinner 25 October 2012 Royal Courts of Justice, London Last few tables remaining Over 500 people are booked at this year’s EIC National Dinner, making it the perfect place to advertise your organisation to the industry’s decision makers.
Advertising space is available within the event ‘bible’ – the Dinner Brochure which contains the table plan and guest list, and starts from just £500, including a place at the event, making this one of the most cost-effective marketing tools available! Space is limited, so contact: southern@the-eic.com For more information visit: www.the-eic.com/NationalDinner Business Presentation: Operations, Maintenance & Engineering Opportunities with Costain 14 November 2012 Venue tbc Full details to follow very soon.
Business Presentation: Opportunities with Aquamarine Power 18 October 2012 Edinburgh Aquamarine Power is a wave energy company, with head offices in Edinburgh and further operations in Ireland. The company is currently developing its flagship technology, an innovative hydro-electric wave energy converter, known as Oyster®. Aquamarine Power’s goal is to develop commercial Oyster® wave farms around the world. Aquamarine Power recently won a major European Commission environment award. The company is currently commissioning its Oyster 800 device at the European Marine Energy Centre in Orkney. Craig Denham, Project Engineer, is an outstanding speaker who has presented extremely successfully to EIC members in the past. Craig will talk about business opportunities currently available with Aquamarine Power including: background information on Aquamarine Power; current work and future opportunities; how to do business with Aquamarine Power, including how potential suppliers can pre-qualify and register as an approved vendor; key contact information including who the key project and procurement decision makers are. This will be a popular event. Please mark the date in your diaries now as places will be limited. Contact: les.brodie@the-eic.com
Industry Outlook: Surety Provision in the Energy Industry 11 December 2012 EIC London Following this hugely interesting seminar that took place in Scotland in June, we are now bringing it to London. Demand for surety provision in the energy industry is increasing as the sector faces a unique set of challenges with its contractual agreements and bond requirements. EIC members are invited to find out more about the role of Surety Bonds, identify the needs of their organisation, understand the potential obstacles they may face in securing these bonds and how to overcome them. This seminar will be run by Gallagher London, one of the largest risk management and insurance broking companies in the world. Further details will be released shortly, in the meantime, if you would like to be added to the interest list for this event, please contact: sarah.slater@the-eic.com For more information on any of these events please contact: Charlotte Hust, Manager, Southern Region Contact: charlotte.hust@the-eic.com Helen Doona, Manager, Northern Region Contact: helen.doona@the-eic.com Lesley-Anne Brodie, Manager, Scotland Contact: les.brodie@the-eic.com
Sector-Based Forum: Gas Treatment, Processing & Storage 23 October 2012 The Thistle, Haydock Full details to follow. Contact: jennifer.hole@the-eic.com www.the-eic.com
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www.the-eic.com
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September 2012
EIC Middle East News
Middle East News
Finally, as always, it is our pleasure to acknowledge member company representatives who we have had the pleasure of meeting since the last Monthly News. We were pleased to welcome Gary Kidd from Hydrasun who is in the process of relocating here, Hugh Fraser from HFI who is always interested in EIC plans and developments plus Vicky Toy from Eversheds who was keen to learn about the different services that the EIC has to offer. Terry Willis, Director, Middle East Contact: terry.willis@the-eic.com
Office News We have signed an agreement with Proclad Academy which will allow us to deliver a selection of training courses that have generated a high degree of interest in the UK. September 10th is the first of these entitled Fundamentals of Oil and Gas. Please check the website for further details. The quiet Ramadan period has allowed us to undertake what is an on-going exercise to determine which member companies have operating offices in this neck of the woods. The results so far are something of an eye opener. To date, we have identified 320 of the 660 total EIC companies in membership (48.5%) which provides a true reflection that represents a considerably high endorsement of current and future business levels in the Middle East. Another highlight for September is our first venture into Kurdistan. With our first overseas delegation planned for February next year, it was important for us to secure an early picture of what is happening in this developing market and what steps need to be taken to assist EIC members. The Erbil Oil & Gas Exhibition was considered the perfect vehicle to start this important journey and we will provide further details in a later edition of the Monthly News. Finally for September, we have our monthly lunch where we are hosting AMEC in Abu Dhabi and as we write, this is proving to be a very popular event for our membership. Looking ahead, we have finalised plans to reschedule our overseas delegation to Egypt which is taking bookings now. A market visit to scope this event will be undertaken at some point during September. Other delegations that have been finalised are the aforementioned Kurdistan in February plus Libya which is scheduled for January. With our golf event also scheduled in February, we can see that the first two months of next year will be exceptionally busy. Another event that we are sure will be of interest to EIC members is the Saudi-British Energy Week scheduled for 2 – 5 December. This is a UKTI initiative which will provide UK companies with a great opportunity to gain exposure right across the board of how to get further involved in the Saudi energy sector. Whilst it will naturally be of interest to companies who may be contemplating an entry into the Saudi market, there will also be opportunities for the more established entities to meet and network with highly placed individuals who they may not have the chance to meet under normal business circumstances. All the major players like Aramco, Royal Commission, EPC contractors including the GES+ guys are fully supporting this and it represents very good value for money for what is on offer. For further information, please go to our non-EIC events page at: http://www.the-eic.com/EICEvents/handlers/ GetNonEICEventDocument.ashx?id=45 or the UKTI’s website at: http://www.ukti.gov.uk/export/countries/ asiapacific/middleeast/saudiarabia/item/337280.html
Regional Comment Total signs Iraqi Kurdistan oil deal Total says it has signed an oil exploration deal for areas in the Kurdistan region of northern Iraq, putting it on a collision course with the central government in Baghdad. The agreement comes with relations between the autonomous region and Baghdad at a low ebb over multiple festering disputes, including over oil contracts and territorial claims. Iraq, which insists all oil deals must go through the central government and regards any that do not as illegal, was quick to condemn the move. But Kurdistan insists the deal is legal. Nareva, Kharabel win Moroccan wind farm deal Morocco’s state power utility ONE has selected a consortium comprised of Nareva and UAE-based Kharabel FZE to develop a 300MW wind farm in the southern Tarfaya region. According to media sources, the consortium values the project at $350 million. The project would be Africa’s biggest wind farm. Technip wins Upper Zakum contract Technip, in a consortium with National Petroleum Construction Company (NPCC), has been awarded by ZADCO a lump sum EPC contract for the Upper Zakum 750K project. Technip’s operating centre in Abu Dhabi will execute the overall engineering and participate in procurement, on-island works, cable installation and initial production. The project is scheduled to be completed in the third quarter of 2015. German energy U-turn powers EU Saharan dream Germany’s decision to abandon nuclear energy and dwindling domestic subsidies for renewables has stoked a dazzlingly ambitious plan to expand Europe’s energy market into North Africa, with an array of giant solar and wind plants glinting in the desert sun. Desertec, a German consortium set up in 2009, envisages Europe importing up to a fifth of its electricity from solar and wind parks in North Africa and the Middle East by 2050. With a projected budget of 400 billion euros ($492 billion), it has been dismissed as too expensive, too risky and too big. Business leaders say the economics are not compelling yet, but some say technological advances and judicious use of EU money could change that. The European Commission, the EU’s executive arm, has raised the prospect of financial, legal and practical support.
EIC Newsbriefs – Keeping you up to date on energy news from around the world. Email membership@the-eic.com www.the-eic.com
21
September 2012
EIC Asia Pacific News
Asia Pacific News
Office News
Malaysia PETRONAS signs agreement with RAPID PETRONAS has signed a Heads of Agreement with Italybased Versalis SpA to jointly own, develop, construct and operate elastomer plants within PETRONAS’ proposed Refinery and Petrochemical Integrated Development (RAPID) complex in Pengerang, Johor. Under the terms of the HoA, the joint venture will produce and market synthetic rubbers. The elastomer plants will be part of the world-scale facilities to be developed within the RM60 billion RAPID complex.
EIC Singapore is moving to a new office located in the city centre. Nearby is the Centennial Tower, hotels and local amenities. The location is accessible with the nearest MRT station right at its doorstep. The Exhibition and Convention Centres at Marina Bay Sands and Suntec are a stone’s throw away. Members are welcome to use the excellent meeting/training/reception room and hot-desk facilities to conduct meetings, meet clients and make presentations at any time during office hours by prior appointment. Wi-fi and cabled internet access are also available to members. Plans are underway to expand our training services, business presentations and networking events. We will focus on continuing to provide excellent local market knowledge and experience, local energy contacts, guidance and support to members. Full contact details for the new office will be published next month. We welcomed Stuart Martin, Project Group Manager and Colin Clarke, Project Engineer from Archer during their visit to Singapore. They discussed with us plans for business development in the region and Stuart said: “Tapping into the market knowledge and resources of the EIC will help us determine our strategic planning”.
South Korea Energy imports increase 14.6% South Korea imported US$81.5 billion worth of crude oil, natural gas and coal during the January – June period, up 14.6% in value from a year earlier, according to the Korea Customs Service. The increase is attributed to a spike in average import prices of crude oil and natural gas, which jumped 11.3% and 26.2% over the cited period. Thailand National Energy approves revision of power plan The National Energy Policy Council has approved the third revision of the country’s 2010 power development plan (PDP) in response to a rise in demand for electricity. According to the third revision of the PDP, the country will be required to maintain power reserves of not less than 15% of peak demand. Power reserves in the future will be sought from renewable power by 2030. Thailand is expected to have total power capacity of 70,686MW by 2030.
For more information about upcoming events, or if you need any help or advice in the region, please contact the EIC Singapore office: Tel +65 6225 9431 Email singapore@the-eic.com Loong Say Meng, Director, Asia Pacific Contact: loong.saymeng@the-eic.com
Vietnam Dow Chemical signs new co-operation agreement Dow Chemical International and the Office for Business Sustainable Development of the Vietnam Chamber of Commerce & Industry have signed a MoU to collaborate on providing a cleaner production and waste management training programme in Vietnam. It will focus on raising the awareness and knowledge of best practices for cleaner production and waste management amongst small and medium sized businesses, where awareness has remained limited. This collaboration will initially be for up to two years.
Regional Comment Indonesia More incentives for renewable energy development The government will continue to provide more incentives to help realise its target of increasing the use of renewable energy from the current 5% to 26% in 2025 and to 35% in 2050. The price of electricity generated from waste or biomass will be set at between 12 and 14 US cents per kWh. The government will also set up a new state company specialising in developing and managing renewable energy.
EIC Newsbriefs – Keeping you up to date on energy news from around the world. Email membership@the-eic.com www.the-eic.com
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September 2012
EIC China News
China News
Alstom builds technology centre in Tianjin Alstom SA, the world’s third-largest power-equipment maker, is working on the second phase of a hydropower technology centre in Tianjin to boost business, said General Manager Yves Rannou, Alstom Hydro China Co. The construction is expected to be completed by mid-2013. The new centre, in the northern city of Tianjin, is Alstom’s sixth after centres in France, Switzerland, Brazil, India and Canada. “We see huge potential to be exploited,” in China’s hydropower market, particularly in the south, Jerome Pecresse, Renewable Power President for Alstom, said in an interview. He expects the market to continue to grow.
Office News We were very pleased to meet the following visitors in the last month: Dewi Gendo from Chapman Freeborn made his first visit to the EIC Beijing office; Johnson Jiang from Cullum Detuners used the office facility while on a business development trip, and other senior managers from NOCs visited us while on calls to some of our member companies. During the past month we assisted member companies including GF Piping Systems, Score Group, Donut International Ltd and Safehouse Habitats. EIC global members are starting to realise the benefits of the EIC office in China which offers free use of our excellent facilities and access to our unrivalled local knowledge and contacts. For more information contact: Salina Zhang, Regional Manager, China Contact: salina.zhang@the-eic.com
Black & Veatch wins gas turbine projects in China Black & Veatch has been selected by Harbin Electric Company Limited to help deliver three combined cycle power plants in China. Located in Zhejiang Province, Guangdong Province and the Beijing region, the plants will deploy advanced gas turbine technology. Together, the three plants will produce approximately 3000MW of low emissions gas-fired electricity and alleviate industrial power and steam supply shortages. Black & Veatch’s expertise will focus on delivering the high-end turbine technology that will be deployed at the three projects. On all projects, Black & Veatch will design the turbine island balance-of-plant systems and turbine pedestals. Black & Veatch will also prepare the auxiliary equipment’s technical specifications and installation drawings, and provide overall turbine package interface engineering support. While commissioned by Harbin Electric, the plants are owned and operated by three of the largest state-owned independent power producers (IPP): the Banshan plant by Huadian Group; Hengqin plant by China Power Investment Group and the Gaojing plant by Datang Group. Black & Veatch will work closely with all three owners to ensure smooth project execution and timely delivery of the plants.
Regional Comment CNOOC makes Bohai Bay gas discovery China National Offshore Oil Corp (CNOOC) has said that it has made its first deep gas discovery in Bohai Bay. CNOOC discovered the natural gas after digging a well more than 5000 metres deep in north eastern Bohai Bay. It did not reveal how big the discovery was but heralded it as a technological breakthrough. In April, chief financial officer, Zhong Hua, said the company had made five offshore oil discoveries in Bohai Bay over the first three months of this year. He said the region would continue to be CNOOC’s main growth engine for offshore finds. CNOOC signs PSC with Primeline CNOOC Ltd has announced that its parent company, China National Offshore Oil Corporation has signed a production sharing contract (PSC) with Primeline Energy China Limited (PECL) and Primeline Petroleum Corporation (PPC) for Block 33/07 in the East China Sea. Block 33/07 is located about 390 kilometres off Shanghai in the East China Sea. It covers a total area of 5877 square kilometres, with a water depth of 90 metres. According to the terms of the contract, Primeline will conduct a 3D seismic data survey and drill exploration wells in Block 33/07 during the exploration period, in which all expenditures incurred will be borne by Primeline. CNOOC has the right to participate in up to 51% working interest in any commercial discoveries in the block. This is the fourth petroleum contract that Primeline has signed with CNOOC.
Schlumberger buys 20% stake in Chinese driller Oilfield services giant Schlumberger Ltd has acquired a minority interest in Chinese driller Anton Oilfield Services Group, a Beijing-based company specialising in horizontal drilling and hydraulic fracturing (fracking), for an undisclosed sum. A statement from Anton recently confirmed that Schlumberger had bought a 20.1% stake in the company, which is valued at more than HK$635 million ($82 million) at HK$1.50 ($0.19) per share. Wartsila wins LNG fuelled tug contract from CNOOC Wartsila Corporation has said that it will supply the engines for two new LNG-powered tugs for a subsidiary of CNOOC, which will be the first of its type in China. The announcement was made in a statement with the company saying that the vessels would each be powered by two of its six cylinder Wartsila 34DF in line dual-fuel models. Delivery of the engines is scheduled for the beginning of 2013, and the first of the tugs will be handed over in June 2013.
Haldor Topsoe to build new Chinese catalyst plant Haldor Topsoe has entered into an agreement with the Tianjin Economic-Technological Development Area (TEDA) to acquire land for building a new catalyst plant in China. The catalyst plant is expected to commence operations in early 2014. Haldor said catalyst production in China will have no negative impact on growth activities in Denmark.
EIC Newsbriefs – Keeping you up to date on energy news from around the world. Email membership@the-eic.com www.the-eic.com
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September 2012
EIC North and Central America News
North and Central America News Office News
Construction starts on Keystone XL pipeline TransCanada has received the final three key permits needed from the US Army Corps of Engineers to begin construction on the 485 mile $2.3bn Gulf Coast leg of its controversial Keystone XL pipeline, from Cushing, Oklahoma to Beaumont, Texas, with an extension to Houston. The northern leg of the pipeline is still under review by the Department of State; a decision is expected early in 2013.
EIC staff donned Olympic shirts and joined UKTI and BABC for an afternoon of football and networking. Our Sales Training Lunch and Learn was a popular subject for Houston members. Troy Elmore from Sandler Training did an excellent job giving us new techniques and tools for even the seasoned professional to learn to use. We have requests to do this again. For those requiring more technical training we hosted a class on Fundamentals of Midstream Processing Gas Pipelines and LNG. This class was conducted by Marty Setzler of EKT Interactive. Plans are underway for our 3rd Annual Sporting Clays Tournament on 5 October. OilCareers are out to defend their title, having two trophies under their belt. Sponsorship is available for this event. FrogDog Communication will lead our September Lunch and Learns with marketing and social media information. Leslie Farnsworth is a leader in the industry and we are so excited to have her presenting. For more information about the EIC Houston office, or should you require any help in the North and Central America market, please visit our website or contact: The EIC (North and Central America) Suite 850, 11490 Westheimer, Houston, Texas 77077 Tel +1 713 783 1200 Email houston@the-eic.com
Shell to drill 10 wells in the Arctic in the next 2 years Shell has scaled back its offshore drilling programme in the Alaskan Arctic. Instead of drilling five wells this year, they will only be able to drill two. The main reason is because it is taking longer to finish and certify a required oil spill containment barge, which is currently being worked on in Washington state. Other reasons include issues with an air pollution permit and stubborn ice. The company plans to drill ten wells in the Arctic in the next two years. This year’s drilling must be completed by 31 October in the Beaufort Sea and 24 September in the Chukchi Sea. BP to develop Utica/Point Pleasant shale BP has announced major plans for the Utica/Point Pleasant shale. They will be leasing 84,000 acres in north east Ohio for future oil and gas production. This shale is at a depth of about 6000 feet, has a thickness similar to the Marcellus, and has the potential to deliver higher liquids rates. The Ohio Department of Natural Resources estimates a recoverable Utica shale potential between 1.3 and 5.5 billion barrels of oil and between 3.8 and 15.7 trillion cubic feet of natural gas. BP’s focus this year is to better understand the geology and come up with safe development plans for the resource. Initial wells will be drilled next year.
Regional Comment US natural gas and oil production affected With much of the US suffering from a drought, there are fears that it will affect natural gas and oil production in the country. The industry uses millions of gallons of water for hydraulic fracturing. Many companies, mostly small to mid-sized, are being forced to scale back or suspend some operations due to restricted water access. There is a movement amongst the population to pass bills that would limit drillers’ access to fresh water, instead requiring them to reuse water after fracturing. Recycling would increase the costs of drilling, and drilling activity is already suffering from current low natural gas prices.
CB&I buys Louisiana-based rival Shaw Group In business news, major company news recently announced includes NRG acquiring GenOn Energy, making it the largest US independent electricity producer. CB&I is buying Louisiana-based rival Shaw Group; CB&I Shaw will be one of the world’s largest energy contractors. Chinese state-owned CNOOC is purchasing Canadian oil and gas producer Nexen. However, the merger faces review by both the Canadian and US governments before the deal can close.
Chimera Energy Corp and PEMEX sign MoU In Mexico, Texan company Chimera Energy Corp has executed a MoU with PEMEX regarding the utilisation of CHMR’s exothermic non-hydraulic extraction method throughout Latin America. The non-hydraulic extraction method is a shale oil extraction technology designed to safely replace hydraulic fracturing (fracking) without negative environmental impacts. The new process uses no water. Some of the largest concentrations of shale oil in the world are located throughout Latin America. Nonhydraulic extraction has recently emerged to be asserted as a cheaper and more effective extraction method that does not affect groundwater at all. Chimera Energy is in the process of re-engineering this new method for mass production, relicensing and sales.
US renewable industry slows down In political news, the renewable industry is slowing down. While booming under the Obama administration (in fact the US just reached the 50 gigawatt milestone of windgenerated energy capacity, and several new federal solar and wind projects have been fast-tracked), the Republican nominee Mitt Romney says he will end tax cuts and subsidies for renewables. Romney’s platform is more fossil fuel-friendly, with less government regulation.
EIC Newsbriefs – Keeping you up to date on energy news from around the world. Email membership@the-eic.com www.the-eic.com
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September 2012
EIC South America News
South America News Office News
Regional Comment
In July the EIC hosted two events: a Business Presentation with GE Energy on 26 July where the Executive Director Daniel Meniuk and the Account Executive Reinaldo Rezende shared with the group of 17 people a broad view of the company, recent acquisitions in Brazil, and main challenges and opportunities with GE; and on 31 July we held a workshop: Understanding Procurement in Petrobras gathering 13 delegates who had the chance to ask questions about opportunities with Petrobras, pictured below.
Brazil to invest $250 billion in shipbuilding Petrobras has recently pledged to invest $250 billion over the next five years in the expansion of its offshore fleet, operated by its sister company Transpetro. The amount is expected to be invested in the construction of new tankers, platforms, drilling rigs, supply vessels and ethanol barges, among other vessels. Government-sponsored shipbuilding programmes such as PROMEF (tanker vessels) and PROREFAM (supply vessels) have stepped up investment in the industry and large investments are being made in the construction of new shipyards (eg Açu SuperPort, Jurong’s Aracruz shipyard) and in the expansion of existing ones. Colombia’s security woes increase Although the country has greatly improved security conditions for its largely onshore oil and gas sector, increasing guerrilla activity has been causing concern in the industry. Last July a section of the 220,000b/d Cano Limon-Coveñas oil pipeline was destroyed by insurgents and five Ecopetrol staff lost their lives after a FARC attack in Putumayo Province. FARC militants were responsible for 84 attacks in 2011, up from 31 in 2010. Ecopetrol’s results are also being affected as a result of disruption to its activities: the company’s Q2 results showed that net income fell by 2.5% compared to last year’s figures. In addition to low oil prices, Ecopetrol has mentioned ‘operational restrictions’ as causes for the result. Despite security concerns, Colombia is expected to attract $16 billion in foreign investment this year, with a large amount going to extractive industries. The country aims to produce 1 million barrels per day by the end of the year.
Forthcoming Events The Rio team has put together a set of events to coincide with Rio Oil & Gas in September in order to help our members get the most from their visit to the region as well as for the 33 companies exhibiting in the UK Pavilion. • UK Pavilion Whisky Tasting at Rio Oil & Gas 2012 at 6pm sponsored by UKTI 18 – 19 September 2012 • Local Content Workshop with ABS 19 September 2012 • Corporate Entertainment: Rio Samba & Gas 2012 19 September 2012 (evening) • Getting Going in Rio and Rio Office Open House 21 September 2012 To help raise the EIC’s profile in South America, we have put together a small survey. We kindly ask you to reply to 9 questions at the following link: http://www.surveymonkey.com/s/82BLGFL We will also be launching 2 training workshops in October: • Business & Management Workshop: The Professional Presenter 2 – 3 October 2012 • Technical Workshop: Introduction to Control Valves with Koso Kent Introl 30 October 2012 The Overseas Delegation to Peru has been confirmed for 14 – 19 October. If your company would like to provide training in Brazil, or if you would like any information on the above, please contact the Rio office: rio@the-eic.com Clarisse Rocha, Regional Manager, South America Contact: clarisse.rocha@the-eic.com
Venezuela admitted as Mercosur’s new member South America’s fourth largest economy has been admitted as the newest member of the Mercosur trade bloc, whose members also include Argentina, Brazil, Uruguay and Paraguay, which was recently suspended following the hasty impeachment of president Fernando Lugo. Mercosur now represents 83.2% of the region’s gross domestic product, covering a population of 270 million people. Venezuela’s entry into the free trade area, delayed by six years, is expected to boost oil exports to Mercosur members, which already import around 58,000 barrels per day. The move has also prompted the Chavez administration to reinforce ties with its neighbours, such as the partnership with Brazil’s Petrobras for the construction of a 230,000b/d refinery and an agreement for joint oil production with Argentina’s YPF. Ecuador and Bolivia have also begun negotiations to join the bloc, which has existed since 1991.
EIC Newsbriefs – Keeping you up to date on energy news from around the world. Email membership@the-eic.com www.the-eic.com
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September 2012
MEED Oman Investment Forum
www.the-eic.com
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September 2012
st re few m ai ta ni b l n g es
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EIC National Dinner Thursday 25 October 2012 Royal Courts of Justice, London
Ideally located on the Strand, the award-winning Grade I listed Royal Courts of Justice is the stunning venue for the 2012 EIC National Dinner. We invite Members and their guests to join us for a predinner drinks reception, a delicious meal and exceptional entertainment within this outstanding setting. The EIC National Dinner provides an unmissable opportunity to host valued clients, network with prospective customers and generate business contacts. Guests will be treated to entertainment from award-winning comic Dominic Holland who will be acting as compere and host for the evening, as well as music from the upbeat acoustic covers band, Fables & Friends. The EIC welcomes bookings for full tables, half tables and individual places at the National Dinner. Take advantage of discounts by booking a table: Full table (12 guests) Full table (10 guests) Full table (8 guests) Half table (5 guests) Individual place
£2052.00 £1710.00 £1398.40 £902.50 £190.00
(10% discount) (10% discount) (8% discount) (5% discount)
Smaller parties and individual places are very welcome and will be asked to share tables as this will enhance networking and socialising opportunities. All prices exclusive of VAT. Sponsorship and advertising opportunities are available Please see the website for more information on ways to enhance your company’s presence at this event.
Book Now: southern@the-eic.com www.the-eic.com/NationalDinner www.the-eic.com
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September 2012
If you would like more information or are interested in becoming an EIC member, please write, telephone, fax or email The EIC (Head Office and Southern Region) 89 Albert Embankment, London SE1 7TP Tel +44 (0)20 7091 8600 Fax +44 (0)20 7091 8601 Email info@the-eic.com The EIC (Northern Region) Belasis Business Centre, Belasis Hall Technology Park, Billingham TS23 4EA Tel +44 (0)1642 379 972 Fax +44 (0)1642 379 971 Email billingham@the-eic.com The EIC (Scotland) 72 Carden Place, Aberdeen AB10 1UL Tel +44 (0)1224 626 006 Fax +44 (0)1224 637 393 Email aberdeen@the-eic.com The EIC (Middle East) PO Box 54455, Office No 5WA 228, West Wing Building 5A, Dubai Airport Free Zone, Dubai UAE Tel +9714 299 3945 Fax +9714 299 3946 Email dubai@the-eic.com The EIC (Asia Pacific) No 8 Eu Tong Sen Street, #15-96 The Central, Singapore 059818 Tel +65 6225 9431 Fax +65 6225 9495 Email singapore@the-eic.com The EIC (China) Room 2503, Tower B, R&F Twins Tower, No 55, Dong San Huan Zhonglu, Chaoyang District, Beijing, China 100022 Tel +86 10 5876 5705 Email beijing@the-eic.com The EIC (North and Central America) Suite 850, 11490 Westheimer, Houston, Texas 77077 Tel +1 713 783 1200 Fax +1 713 783 0067 Email houston@the-eic.com The EIC (South America) Ed. Manhattan Tower, 26th Floor, Avenida Rio Branco 89, 20040-004 Rio de Janeiro - RJ, Brasil Tel +55 21 3265 7400 Fax +55 21 3265 7410 Email rio@the-eic.com
www.the-eic.com
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