EIC Monthly News September 2014 by Energy Industries Council

EIC Monthly News September 2014

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The EIC Chief Executive

The Chief Executive Welcome to the September edition of the EIC Monthly News. As we come to the end of the summer and head into autumn, we are busy planning the EIC’s programme of events and exhibitions for the next 18 months, both in the UK and globally. Our new office in Kuala Lumpur will officially launch on 9 September and will be opened by our guest of honour, Dato Wee Yiaw Hin, Executive Vice President and CEO of Petronas. Along with myself and Azman Nasir, the EIC’s Head of Asia Pacific, we will be joined by His Excellency Simon Featherstone, British High Commissioner to Malaysia, Grant Shapps MP and senior executives from the energy industry. Places are still available if you would like to attend and will provide a great opportunity to network and view the excellent office and meeting facilities we now have in Kuala Lumpur. September will also see the launch for booking stand space in the UK Pavilion at Oil & Gas Asia which is also held in Kuala Lumpur from the 2-4 June 2015. Moving across the globe there are challenging times ahead in Iraq. Instability has led to operators suspending and delaying work in Kurdistan which was previously considered safe. For example, Oil Search and WesternZagros have recently suspended well operations at the Taza and Sarqala oil discoveries respectively due to instability in the region. However, both operators have indicated that they are committed to the region in the long term. Here in the UK, positive news comes from a new survey by Populus for UK Onshore Oil and Gas that concluded that shale gas development has the support of a majority of the population (57%). Given that shale explorers have been cautious about starting drilling in the face of strong protests, the results show a majority of support across all regions. The UK’s shale gas resources are very significant: the British Geological Survey (BGS) has given a central estimate of 1,300 tcf of shale gas reserves in the Bowland-Hodder Shale area, which stretches from Blackpool and Wrexham to Scarborough. The opportunities for the supply chain are also significant, with the UK Onshore Operators Group (UKOOG) estimating that the domestic shale industry could create £33 billion in investment opportunities for British business and over 64,000 jobs. At the end of July 2014, the Government launched the 14th onshore licensing round, providing operators with the opportunity to apply for onshore PEDLs within the shale basins. Meanwhile in the renewables industry, the Westermost Rough Wind Farm has installed its first Siemens’ turbine which signals continuing growth of offshore wind. This development comes alongside the Government driving investment in renewables via the UK Treasury issuing guarantee bonds for the Speyside biomass power project. Further developments in the implementation of the Government’s Electricity Market Reform saw the prequalification round for the UK capacity mechanism open in early August. It will be interesting to see what projects will come forward, marking the start of a new tranche of flexible thermal power plants to balance the forthcoming generation from intermittent renewables, in the UK. Finally, we are looking forward to welcoming over 550 members and guests to the EIC’s National Dinner in October. It is sure to be a wonderful evening and the winner of the 2014 EIC Award for Supply Chain Excellence will be announced. Claire Miller, Chief Executive www.the-eic.com

Contents The Chief Executive

Sector Analysis

EIC Monitor

New Members

Member News

Events Diary

Overseas Events

National Events

UK News

Middle East News

Asia Pacific News

North America News

South America News

Training Services

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September 2014

Sector Analysis US Shale: more than just gas The development of shale resources has positively affected both the power and midstream energy sectors in the US, with the downstream sector also reaping the benefits of increased oil and gas production. In 2008, Henry Hub gas averaged at a rate of US$8.86 per million BTU, this has greatly reduced and in 2013 it averaged at a rate of US$3.72 per million BTU. The production of shale gas has been the main reason for the fall in domestic gas price, with gas production in the US increasing from 1.98 tcf in 2008 to 2.42 tcf in 2013. The price of associated NGLs such as ethane, methane and propane have all fallen and these are key feedstocks for the petrochemicals sectors. Increased methane production has resulted in large scale investments in greenfield methanol projects. There are currently eleven new methanol projects in the US with a total project value of US$14 billion and a total production capacity of 23.2 mtpa. Six of these projects are at EPC stage, one is at FEED stage and the remaining four are at feasibility stage. The majority of these methanol plants are strategically located in the Gulf Coast states of Texas and Louisiana, providing operators with the advantage of lower transportation costs for sourcing the methane feedstock due to the large shale gas plays in the area, and closer proximity to Gulf Coast ports for the exportation of the methanol to international markets. Chinese companies have played very close attention to this reduction in methane prices and are planning to invest large sums of money into the construction of major methanol plants. Fund Connell USA Energy and Chemical Investment Corp, a JV of Connell Group and Sino Life Insurance is planning to invest US$4.5 billion on the construction of a 7.2 mtpa methanol plant and a new large deep-sea marine export terminal. The operator has leased 900 acres of land at Shoal Point, Texas City, but is also considering a site near Donaldsonville, Louisiana. A final decision will be made on location of the project in Q2 of 2015. Shandong Yuhuang Chemical is also planning to invest US$1.85 billion on the construction of a methanol plant in St James Parish, Louisiana. The plant will be built in phases, with the first phase comprising of a 1.5 mtpa methanol production unit. The second phase will also comprise of a 1.5 mtpa methanol production unit and a methanol derivatives plant. Most of the methanol will be shipped by ocean vessel to China for use in Shandong Yuhuang’s other chemical operations, while 20-30% will be sold to North American customers and shipped by river barge and rail.

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Other companies have already made headway with their projects. Methanex is spending a total of US$1.1 billion on two projects that will see the dismantling and transportation of two of its methanol plants in Chile to Louisiana, where they will be reconstructed and placed into operation. Each plant will have a production capacity of 1 mtpa, with the first plant scheduled to be operational by the end of 2014 and the second plant scheduled for operations in the first half of 2016. Methanex’s two plant projects in Geismer, Louisiana, reflect the impact that cheap methane feedstocks have had on the nation’s methanol industry. These plants show how cost effective methanol production in the US is as it is cheaper for Methanex to transport two plants from Chile in order to undertake production in the US, rather than continuing to produce methanol in Chile. South Louisiana Methanol, a JV comprising of ZEEP and Todd Energy, is constructing a 1.8 mtpa methanol plant in St James Parish, Louisiana. This will be the largest methanol plant in North America once completed. The FEED for the project was undertaken by SK E&C and the EPC contract has been awarded to Fluor. The project received all of its construction permits in January 2014 and construction is scheduled to begin in the second half of 2014. A JV of Celanese and Mitsui is in the construction phase of its 1.3 mtpa plant in Harris County, Texas. The EPCM work is being undertaken by WorleyParsons and the plant is scheduled to become operational in Q3 of 2015. The petrochemicals market in the US is experiencing a large boom in projects and investment. The methanol market in particular is taking advantage of cheap methane feedstocks from shale gas production and as a result is undergoing a large transformation. Demand from Asia is also keeping the methanol market in the US buoyant and has assisted in providing investors with confidence to pursue these new methanol projects. Bahzad Ayoub Sector Analyst (Downstream & Unconventional) Tel +44 (0)20 7091 8638 Email bahzad.ayoub@the-eic.com

September 2014

EIC Monitor

Oil & gas contracting levels remain steady

Further east, progress has continued on the BP-led US$28 billion Shah Deniz Phase II project in Azerbaijan after the project partners reached a Final Investment Decision in December 2013. In April 2014, three EPC contracts were awarded on the project: a joint venture between Bos-Shelf, Saipem and Star Gulf will supply the jackets, two platforms and 2,300 subsea structures and will also perform transport and installation services for the above, while Baku Shipyard will supply a subsea construction vessel. In Iraq, four significant contracts have been awarded across three of its super-giant oil fields. Eni has awarded Daewoo a contract for the southern degassing station and Alstom a contract to build a 740MW gas-fired captive power plant on its US$18 billion Zubair oil field project. Petrofac was awarded a US$535 million PMC contract by the BP led JV at the US$15 billion South Rumaila oil field, while Gazprom has awarded Techno Engineering Services a contract for a 105km gas transport pipeline on the US$3 billion Badra Oil Field.

The latest EIC Monitor report shows that levels of contracting activity have maintained momentum across the global upstream, midstream and downstream sectors in Q2 2014, with overall figures showing significant growth in the number of major upstream contract awards made since the last quarter. The level of major contracting activity across the global oil and gas industry has remained healthy during the last quarter (Q2: April-June 2014), with 136 contracts placed, a negligible 1.5% decrease compared to 138 in Q1 2014, but still significantly less than the 170 contract awards made in Q2 2013.

Upstream

In Q2 2014, a total of 65 major contracts (EPC, FEED and Subsea/SURF) were awarded across 44 upstream developments, rising 25% from 52 awards in Q1 2014, but still well below the activity levels seen in Q2 2013 when 74 major upstream contracts were awarded. A total of 33 EPC contracts, 18 FEED contracts and 14 Subsea/ SURF contracts were awarded in Q2 2014.

FEED Activity In Q2 2014, UK, Norway and Malaysia dominated FEED activity, accounting for over half (10) of the upstream FEED contracts awarded this quarter. In the UK, two awards were made apiece on Apache’s US$50 million Aviat Gas discovery and Maersk Oil’s US$3 billion Culzean HPHT Gas & Condensate Field, both in the Central North Sea. Petrofac was awarded a contract for the topsides and Wood Group Kenny a contract for the subsea work on the former, while KBR was appointed to carry out the FEED work for the topsides and Ramboll the contract for the wellhead jacket on the latter. In Norway, IKM Ocean Design and Kongsberg Maritime were awarded FEED contracts for infield pipelines and safety and automation systems respectively by Statoil and its partners for the major US$17.5 billion Johan Sverdrup development in the Norwegian North Sea. With pre-qualification work taking place on this project, it is expected that future contracts will continue to be awarded throughout the year. The isolated Bream Field in the Norwegian North Sea has also been targeted for development by Premier Oil, who plan to produce from the field using a Sevan Circular FPSO. Aibel has been awarded a contract to carry out FEED studies for the FPSO topsides. Malaysia has remained a consistent market for offshore work in Q2 2014. Ranhill Worley successfully secured two FEED contracts in Malaysia: one for detailed design on Shell’s US$300 million E6 Oil and Gas Field development and one for an infill drilling programme on Petronas’ US$100 million Samarang Redevelopment Project. Progress was also made on Shell’s US$200 million St Joseph Oil Field Chemical Enhanced Oil Recovery Project, for which a joint venture between Petrofac and RNZ Integrated secured the FEED work.

EPC Activity The UK, Iraq and Azerbaijan have been hotspots of activity, together accounting for 13 EPC contracts across six upstream developments. In the UK, Premier Oil has led EPC contracting activity with its US$2.5 million Catcher, Varadero, Burgman and Bonneville development in the Central North Sea, which was given the green light from the UK Government in June 2014. In the lead up to the approval, Norwegian outfit BW Offshore secured an EPC contract to build the FPSO, with Aibel awarded a contract to perform engineering services on the topside for the vessel; Subsea 7 landed the contract for subsea facilities; and Aquaterra Energy is set to carry out the work for six drill centre templates. Two contracts were also awarded by Xcite Energy on its US$700 million Bentley Heavy Oil Field development. Teekay Corporation was awarded the EPC work for the supply of a bridge-linked FSO unit and a joint venture between AMEC and Arup secured a contract to build the PDQ platform. www.the-eic.com

September 2014

EIC Monitor Subsea/SURF Activity Projects in the Gulf of Mexico and Angola have accounted for half of Subsea/SURF contract awards in Q2 2014, together accounting for seven contracts across four upstream developments. In the deepwater Gulf of Mexico, off the coast of Louisiana, Noble Energy has awarded two contracts on its US$1.1 billion Gunflint subsea tieback in the Mississippi Canyon: one to Oceaneering International to manufacture and test subsea distribution equipment, and one to EMAS for the offshore installation of pipelines, umbilicals and ancillary equipment. In the neighbouring Green Canyon offshore area, operator Freeport McMoRan Copper & Gold has awarded Subsea 7 a contract to install flexible pipelines and umbilicals for its US$250 million Holstein Deep subsea tie-back. In Q2 2014, three Subsea/SURF contracts have been awarded on Total’s US$16 billion Block 32: Kaombo Project (Gengibre, Gindungo, Canela, Louro and Mostarda fields) following an FID being reached in April 2014. Aker Solutions has secured the contract for the subsea production system; a joint venture between Heerema and Technip has been appointed to supply the flowlines and umbilicals; and a joint venture between Sonangol, DUCO and Technip will also provide umbilicals.

Novatek has awarded EPC contracts to Teekay Corporation, Sovcomflot and Mitsui for LNG carriers for its US$27.2 billion Yamal LNG plant, while state-controlled operator Gazprom has awarded contracts to Allseas, Saipem and Stroytransgaz for the US$39.2 billion South Stream Gas Pipeline Project. Allseas will construct the 900km deepwater section of the second line, Saipem will provide support works related to the construction of the second line and Stroytransgaz will construct the Bulgarian section of the pipeline. In central Russia, CJSC Vozrozhdenie secured an EPC contract to build three underground river crossings for the US$7.8 billion Kuyumba-Taishet pipeline. In India, Gulf Petroleum awarded Vijay Tanks & Vessels an EPC contract to build a total of 48 tanks at the US$150 million Pipavav Oil Storage Terminal; Ratnagiri Gas & Power awarded Essar group a contract to build a 1.9km breakwater for the US$1 billion Dabhol LNG terminal expansion project; and Indian Oil Corporation awarded Jaihind Projects a contract to lay the mainline of the US$166 million Paradip-Haldia-Durgapur LPG pipeline. All three projects in the US where midstream EPC contracting activity took place in Q2 2014 are in the southern states of Louisiana and Texas, where a plethora of petrochemical plants receive shale gas for processing. Honeywell’s UOP company secured two EPC contracts: one for a modular cryogenic gas processing plant as part of PennTex Midstream Partner’s US$300 million PennTex North Louisiana Midstream Infrastructure project and one for Lucid Energy’s US$250 million Big Lake Cryogenic Gas Processing Plant in Reagan County, Texas. Also in Texas, WHC Inc was awarded the EPC contract for NuStar Energy’s US$100 million Pasadena-Mont Belvieu Propane Pipeline.

Midstream

In Q2 2014, a total of 41 major contracts (EPC, FEED and Pre-FEED) were awarded across 32 midstream developments, comprising of 31 EPC contracts, 9 FEED contracts and 1 Pre-FEED contract. There has been little movement in the number of major contracts awarded since Q1 2014, with an increase of just one contract award in Q2 2014, and there has been a decrease of just 2% from the 42 major contract awards made in Q2 2013.

FEED/Pre-FEED Activity North America has been a hotspot of activity this quarter, with four FEED contracts and one Pre-FEED contract awarded in the US and Canada. Contracting levels on LNG liquefaction plants in North America remain strong with midstream FEED activity dominated by such projects. In the US, Samsung Engineering was successful at securing both the Pre-FEED and FEED contracts for the US$1.5 billion Texas LNG Liquefaction and Export Plant in Brownsville, Texas. Also on the Gulf Coast, KBR was awarded a contract to carry out FEED studies for the LNG trains and associated facilities at the US$1.5 billion Gulf LNG Liquefaction Plant. Canada is also moving fast to build LNG liquefaction facilities to process natural gas from regional shale plays. In Nova Scotia, Pieridae Energy awarded CB&I a contract to carry out FEED studies for two LNG trains and associated facilities at the US$9.5 billion Goldboro LNG Liquefaction Plant, the first to be built in eastern Canada. In British Columbia, LNG Canada awarded CFSW LNG Constructors, a consortium between Chiyoda, Foster Wheeler, Saipem and WorleyParsons, a FEED contract for its US$12.3 billion Kitimat Export Terminal.

EPC Activity Russia, India and the US have been hotspots of activity, together accounting for 13 EPC contracts across 10 midstream developments. Russia accounted for over 22% of midstream EPC contract awards in Q2 2014, where seven awards were placed across three major developments. www.the-eic.com

September 2014

EIC Monitor In the Middle East, dual FEED contracts were awarded by Basra Gas Co to two consortia for its US$200 million Ar Ratawi NGL Train 1 project at North Rumaila in Basra. A consortium of Technip, and China’s HQCEC-CNPC secured one FEED contract and a consortium of Chiyoda and Saipem secured the other contract.

In neighbouring Louisiana, Sasol awarded Boardwork Pipeline Partners an EPC contract to carry out longterm ethane and ethylene storage and transportation services for the US$7 billion Lake Charles Ethane Cracker and Derivatives plant, while in the northern Wyoming State, Simplot awarded Linde Group the EPC contract for its US$350 million Rock Springs Ammonia Plant. Outside of North America, EPC activity has been spread quite broadly geographically in Q2 2014, although there has been significant activity in the Russia and Caspian region. In western Russia, Shchekinoazot awarded Haldor Topsoe a contract for its US$1 billion Tula Methanol Ammonia Coproduction Plant; KazMunayGaz awarded Foster Wheeler a contract to carry out EPC work for the steam reformer heater and air pre-heating system at its US$1.8 billion Atyrau Oil Refinery Upgrade project in Kazakhstan; and in Turkmenistan, a consortium of Toyo Engineering, Hyundai Engineering & Construction, Hyundai Engineering and LG International will carry out EPC work on a gas separation unit, ethylene plant and polypropylene plant at Turkmengaz’s US$3 billion Turkmenbashi Petrochemical Plant.

Downstream

In Q2 2014, a total of 30 major contracts (EPC, FEED and PMC) were awarded across 25 downstream developments, a decrease of 35% from 46 awards in Q1 2014 and 45% from 54 awards in Q2 2013. A total of 21 EPC contracts, 4 FEED contracts and 5 PMC contracts were awarded in Q2 2014.

FEED Activity There was a slowdown in downstream FEED activity in Q2 2014 with just four contracts placed, two of which were on projects in North America. In Canada, Kitimat Clean awarded Hatch Energy the FEED contract for its US$30 billion Kitimat Oil Refinery, while in the US, Shell awarded Linde Group a contract for the FEED work on its US$2.5 billion Monaca Ethane Cracker in Pennsylvania, which will be supplied by the Marcellus and Utica shale plays. Elsewhere, Linde Group also secured the FEED contract for Takamul Investment Company’s US$500 million Luban Ammonia Plant in Salalah, Oman, and Saipem won the FEED contract for ICT Group’s US$1.6 billion Ust-Luga Fertiliser Plant in Leningradsky Oblast, Russia.

EPC Activity The US has led downstream EPC activity in Q2 2014, accounting for seven EPC contracts across five downstream developments, the majority of which were for projects in the Gulf States of Texas and Louisiana. There has been heightened contracting activity on ExxonMobil’s US$5 billion Baytown Olefins Plant Expansion in Texas where a new ethane cracker and two polyethylene plants are being built at Baytown and Mont Belvieu respectively. A consortium of Mitsui and Heurtey was awarded a contract for the olefins furnaces, a consortium of Linde and Bechtel is set to carry out the EPC work on the olefins recovery units and Mitsubishi Heavy Industries has been contracted to do the EPC work on two 650,000 metric tpa polyethylene lines. Also in Texas, Ishikawajima Harima Heavy Industries successfully secured two contracts for EPC work: one for Enterprise Product Partners’ US$50 million Mont Belvieu C4 Oleflex Unit Upgrade and one for Dakota Gasification Company’s US$402 million Great Plains Synfuels Plant (Urea Manufacturing Unit).

PMC Activity In Q2 2014, downstream PMC contracting activity had a broad geographic spread, with contracts awarded in Malaysia, Nigeria, Russia, India and the US. The largest project by investment value is Petronas’ US$27 billion Pengerang Refinery and Petrochemical Integrated Development (RAPID) in Johor, Malaysia, for which a joint venture between Fluor and Technip was awarded the PMC contract. Also of note is the US$3.5 billion Brass Islands Fertiliser Plant in Bayelsa State, Nigeria, for which Engineers India has been awarded the PMC contract.

Data for EIC Monitor is sourced from the EICDataStream online project database, which tracks over 10,000 projects proposed or under development in the global energy industry. Visit: http://www.the-eic.com/EICDataStream/AboutEICDataStream.aspx www.the-eic.com

September 2014

Supply Chain Event & Conference 25-26 November, Manchester Central, UK

Discover the potential on major overseas oil & gas projects > Meet operators and contractors > Listen to their presentations

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Supply Chain Briefings:-

Conference Sessions:

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DELEGATE PACKAGE INCLUDES: > Access to all Supply Chain Briefings and Conference Sessions > Opportunity to book one-2-one meetings > Refreshments and lunches on both days & Networking Hour > Event Brochure Pack > Presentation copies after the event 2012 Speakers included:

Our Speaker Companies carry out one-2-one meetings with delegates and circulate the Exhibition to:> Discover UK capability > Source new solutions and technologies > Network with industry

BOOK BEFORE SEPTEMBER TO RECEIVE THE EARLY BIRD BOOKING RATE! > Two or more places before 31 August: £199+VAT each > Individual place before 31 August: £249+VAT each > EIC members from 1 September: £279+VAT each > Non-EIC members from 1 September: £299+VAT each

+44 (0)1642 379975 www.the-eic.com

www.the-eic.com/eicconnect September 2014

EIC LaunchPad

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

EIC Serviced Office Facilities in Dubai, Kuala Lumpur, Houston and Rio offer members the opportunity to cost-effectively build a presence in a new market, while providing support through local access to EIC services. • Low risk and cost-effective market entry • Professionally manned reception and waiting area • Internet and telephone access • Postal and courier service • Copying and printing • Meeting facilities • Advice on legal, banking, insurance and payroll issues • Access to EIC services at a local level

Virtual Office Facilities

The EIC’s Virtual Office Facilities offer members a local identity, enabling members to build bridges to new markets. • Exclusive local identity with a local address • Dedicated phone line answered in company name • Mail forwarding

Hotdesk Facilities

The EIC’s Hotdesk Facilities in all of our offices provide members with workplace services when in-country. • Professional office space • High speed internet connection • Printing and scanning • Access to EIC services at a local level

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September 2014

New Members

Welcome to our New Members New Global Member

New Global Member

5th Floor, 6 St Andrew Street London EC4A 3AE Tel +1 904 404 4491 Fax +1 904 223 8955 Email audrey.adams@aprenergy.com Web www.aprenergy.com The Nominated Representative is Ms Audrey Adams, Market Development Manager. APR Energy provides large-scale power solutions and fast-track mobile turbine power. APR Energy sells electricity to utility and industrial customers that have critical power deficits or require dedicated, distributed or seasonal generation solutions. Through its use of turnkey power plants, APR Energy delivers, within weeks, large blocks of power that can run entire cities. APR Energy has installed over 2.5GW across more than 25 countries.

Edison House Middlesbrough Road East South Bank Middlesbrough TS6 6TZ Tel +44 (0)1642 462 266 Email john.taylor@tte.co.uk Web www.tte.co.uk The Nominated Representative is Mr John Taylor, Technical Sales Manager. The TTE Technical Training Group is the UK’s largest engineering and process training provider specialising in the delivery of engineering, process and laboratory apprenticeships, short courses to industry, up-skilling programmes and training consultancy. All services are available to UK and overseas clients. The company is a specialist provider for the design of vocational training centres based on a proven track record both in the UK and overseas, working in partnership with oil and gas companies to provide local skills capability at technician and operator levels. The certified technician programmes delivered in the UK have gained an international reputation for delivering the skills needed by individuals to do their jobs on a day-to-day basis with a focus on handson skills using realistic industrial process plants. TTE International is flexible in its approach to the implementation of vocational qualifications overseas, enabling international clients to adopt UK international standards to design and implement competency systems based on in-house standards.

APR Energy Holdings

TTE International

New Primary Member

Sky-Futures Partners

The Old Vinyl Factory, 252-254 Blyth Road Hayes, Middlesex UB3 1HA Tel +44 (0)20 7148 1970 Email kkelly@sky-futures.com Web www.sky-futures.com The Nominated Representative is Ms Katy Kelly, Marketing Assistant. Sky-Futures is a global leader for UAV industrial inspections in oil and gas, onshore and offshore and offers a safe, fast and cost-effective inspection service, engaging with the client’s needs from the start. Sky-Futures uses technology-led innovative inspection techniques, such as high-definition and thermal imagery and video to collect data on hard-toaccess infrastructure. Sky-Futures has over 4,500 hours’ worth of flying experience, providing live flare, structural and under deck inspections. High definition video and thermal imagery is presented in inspection reports by SkyFutures’ engineering teams to match client requirements.

New Primary Member

Wildcat

One Old Jewry London EC2R 8DN Tel +44 (0)20 3675 7775 Email michael.holttum@wildcatresource.com Web www.wildcatresource.com The Nominated Representative is Michael Holttum, Consultant. Wildcat Resource is a specialist recruitment company with a sole focus on the energy sector. Wildcat is part of the Tourstan Group which is made up of a number of award winning recruitment firms such as Empiric and Lifestar that serve other specialist sectors including banking, finance and pharmaceuticals. Wildcat has emerged as a separate brand, having spent the first two years trading within Empiric. The practice was founded on over 40 years of recruitment experience and has rapidly become a global provider of specialist recruitment services to the energy market. This has been achieved by capitalising on proactive and meticulous search methodologies, ensuring that clients always have an option of the very best talent despite tight staffing conditions. The company’s aim is to become recognised for its unique approach to recruitment in the energy sector and to become a chosen supplier based on its track record for delivery and customer service excellence.

New Primary Member

Teekay Couplings

Disraeli House, 12 Aylesbury End Beaconsfield HP9 1LW Tel +44 (0)1494 679 500 Email chris.webb@teekaycouplings.com Web www.teekaycouplings.com The Nominated Representative is Mr Chris Webb, Sales Manager. Teekay Pipe Couplings allow pipes to be joined without the need for flanging, grooving, threading or welding. By simply butting two pipes together and connecting with a Teekay Pipe Coupling, space, weight, time and cost savings are achieved with every installation. Teekay Couplings have been sold for over three decades to more than 85 countries worldwide for civil, water, oil and gas, marine, building service, process, automotive and countless other industrial projects for pipes between 21mm and 4,200mm in diameter. www.the-eic.com

September 2014

EIC Member News

Member News

refurbish our buoyancy processing facility and increase production capacity so that we can meet customers’ lead times which are often necessarily short. Our impressive new milling and boring CNC capability has made a huge difference in terms of improved manufacturing tolerances as well as product processing time.” The new facility incorporates an end-to-end process that includes design, testing, temperature-controlled curing facilities and a state-of-the-art buoyancy block boring and milling plant. By bringing the complete process in-house Balmoral now creates intricate ROV/ AUV buoyancy profiles with virtually no size limitations at its CAD/CAM-controlled operation. For more information visit: www.balmoral-group.com

Alderley is celebrating 25 years since the formation of the Alderley Group and the hatching of the iconic Kingfisher logo. In 1989, Alderley was formed by Tony Shepherd, Chairman, based in Wickwar. It has since grown to be an internationally recognised company with seven facilities worldwide including the UAE, Russia, Kingdom of Saudi Arabia and Singapore reaching a turnover of £75 million. From the beginning, Alderley’s strength lay in its ability to tackle the challenges of the emergent offshore oil industry in the North Sea, fast becoming a leader in the field of metering. Having developed equipment and attained the engineering knowledge to cope with these severe operating conditions in the North Sea, the business quickly replicated its success in overseas markets. In 2014, Alderley’s portfolio extends beyond metering to include hydraulic, pneumatic and electrical control systems and produced water treatment solutions worldwide. Tony Shepherd said: “It is interesting to reflect on the growth and development of Alderley over the past 25 years. Engineering skill and technical excellence are what set us apart and have underpinned our strength of offering and company growth. Naturally the success has not been without its challenges especially in the export market, but by actively working with ECGD (now UK Export Finance) to remove the factors that constrain the ability of UK businesses to be competitive in the export market, it has facilitated in Alderley’s success in its export endeavours.” Please visit: www.alderleygroup.com

Damper Technology Ltd’s (DTL) Indian subsidiary company has achieved accreditation to the Quality Management System Standard ISO9001:2008 for the manufacture and supply of dampers. DTL India was incorporated in 2011 and, as work from the Indian operation has grown, it has invested in its own manufacturing facilities, so in addition to the existing workshop a new larger factory is now being built. The 30,000 sq ft fabrication and assembly plant is due to be completed by the end of the year. The team in India consists of a management structure, design engineers, project managers and sales staff, all of whom collaborate closely with their parent company colleagues in the UK. As part of the company’s commitment to continued development, William Lamb will be taking up a two month secondment in India to train and transfer his knowledge and experience on 3D modelling and specific product design. Recent jobs for DTL India have included large scale guillotine dampers with seal air and flap diverters which have been supplied for large FGD projects and offshore platforms. The complex design work for these projects has been carried out by the engineers at DTL’s Head Office in Eastwood, Nottingham. After the secondment period it is hoped the Indian drawing office will be able to complete projects themselves for new orders currently being taken. Mr Suresh Menon, Managing Director, DTL India, said: “The recent ISO 9001:2008 accreditation will be a real selling point for us in the Indian market, and this achievement is being celebrated by staff and customers alike. With support and guidance from the UK office we put the quality management system practices in place right from the outset. The DTL brand is all about providing a quality engineered damper solution whether you buy from the UK, India, North America or via any of our worldwide agents, as we all communicate and leverage on the expertise and local market knowledge within the group.” Visit: www.dampertechnology.com

Remotely operated vehicles (ROVs) and autonomously operated vehicles (AUVs) are becoming progressively more sophisticated in the tasks being demanded of them – from exploration and installation exercises to production operations and decommissioning projects. The ever-increasing global demand for all classes of vehicles, and the corresponding requirement for buoyancy packs, has seen Aberdeen-based Balmoral Offshore Engineering completely overhaul its ROV buoyancy production capability into a dedicated centre of excellence at its city HQ. The move has seen the company create approximately 20 new jobs spanning design, engineering and manufacturing. Following a £1m plus investment in the plant and supporting infrastructure, Jim Milne, Chairman and Managing Director of Balmoral, told the EIC: “The last couple of years have seen an upturn in demand for ROVs around the world. This helped us make the decision to

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September 2014

EIC Member News

Ellis Patents Ltd

The Made in the UK event, which featured an exhibition and conference programme alongside the awards evening, showcased and celebrated the best of the UK manufacturing industry and its future. It also welcomed a range of UK manufacturers, selected as winners from across 10 regional award dinners in recent months, with a total of over 700 guests. The manufacturing Apprenticeship and Training Scheme Award had nine contenders, all of whom provided firm competition, including Jaguar Land Rover and TATA Steel. Junaid Makda, Marketing Manager, Nylacast, commented: “Nylacast is elated to have been shortlisted as finalists for this award, having won the regional Midlands award and getting to the finals for the UK exemplifies the dedicated focus on continually developing our core assets; people, polymers and passion. Being shortlisted alongside a high calibre of finalists illustrates the fact that not only does UK manufacturing continue to excel in global industries, by means of developing and implementing outstanding apprenticeship and training schemes we are all collectively on the frontline of combating the skills shortage, paving a strong path and foundation for future generations.” With a dedicated apprenticeship scheme for young engineering students, coupled with bespoke training programmes for its current workforce, Nylacast recently invested in an onsite Engineering Training Academy which houses the wide range of practical and theoretical training programmes delivered. For more information please visit: www.nylacast.com

Ellis has launched Triton – the world’s first two-in-one cable guide and clamp, which has been designed specifically to assist in the installation and subsequent restraint of high voltage (HV) cables. Triton was designed for an offshore project for Siemens and has now been developed by Ellis into a full range suitable for use with large diameter cables. Richard Shaw, Managing Director, Ellis, said: “A key factor in our ongoing success has been our ability to innovate, but this is the first time we’ve been asked to do so in a live project situation. To come through this challenge with Siemens’ problem solved, a major specification secured, and an entirely new product range ready to launch is a clear demonstration of the expertise and technical know-how Ellis is able to bring to any project – something that really does make us stand out from the opposition.” The challenge set to the Ellis team, which had previously developed a roller-system for installation of HV cables in power tunnels, was to develop a solution that would feed, and then restrain, seven 117mm diameter cables along a specified route within a fabricated structure, which featured a significant number of twists and turns. Triton achieves this in two stages. Firstly, cables are guided by it into their final location, while trumpeted entry and exit points ensure the cable is not damaged when fed through sharp angled turns. Once the cable is laid correctly, the top half of Triton is removed, a fixing piece installed directly onto the cable and the top half re-secured, thus turning the guide into a fully-functioning HV cable clamp. “Triton really is an ingenious solution and one that I am sure will go on to be a successful addition to our extensive range,” added Richard. For information on Ellis, its products and services visit: www.ellispatents.co.uk

Oil Consultants, which provides highly skilled technical personnel to global clients in the oil and gas industry, has been named ‘Best Specialist Agency’ at the Global Recruiter Awards at a ceremony in London that played host to the recruitment industry’s leading companies. With clients in over 95 countries and 25,000 registered candidates, the judges described Oil Consultants’ entry as outstanding and praised their commitment to quality delivery and candidate management as well as their thriving online social media communities and financial growth. Melissa Young, Marketing Manager at Oil Consultants, said: “It was a real surprise to win this award as the competition we faced was of a very high calibre. The whole team has worked hard to achieve the successes we have enjoyed and is dedicated to providing the highest level of customer service to clients and candidates alike. To have this recognised and rewarded by our peers is a real boost.” Commenting on the win, Helen Smith, CEO, Oil Consultants, said: “We are delighted to have won this award but will not be resting on our laurels. We are continuously developing ways in which we can improve our service and increase our business success and are looking forward to another successful year.” For more information please visit: www.oc99.com

UK-based engineering solution provider Nylacast has been shortlisted as Finalist for the 2014 ‘Made in the UK’ awards for best Apprenticeship & Training Scheme. Having won the ‘Made in the Midlands’ award in May, Nylacast was automatically nominated as finalist for the national awards which took place at the BT Convention Centre in Liverpool on 21 July. www.the-eic.com

September 2014

EIC Member News The FROG-XT is an evolution of the current FROG capsule and captures over 20 years of Reflex Marine’s vast learning and experience. The range allows for low and high capacity transfers as well as the capacity for all devices to be quickly and easily converted to MedEvac mode to transfer casualties. The advanced design features of the new FROG-XT provide greater comfort and a more secure passenger experience, while being more compact and easier to ship and maintain. Wider operating parameters as well as the ability for high capacity transfers makes the FROG-XT range extremely versatile allowing for flexibility in operations. The FROG-XT range has undergone the most rigorous development, testing and verification programme in Reflex Marine history to ensure that the designs are fully optimised to protect passengers from all the key risks associated with marine personnel transfer. The objective of the test programme was to verify the capsule’s performance and integrity, and the level of protection afforded to passengers. Testing was conducted in a range of impact and immersion scenarios, well beyond the anticipated operational risk envelope. The testing philosophy is modelled on development processes used in the automotive industry, in which cars are tested in a range of impact scenarios to assess potential injuries to passengers. Reflex Marine’s highly experienced engineering team worked with a number of specialist consultants to conduct testing to include fullscale immersion and self-righting tests as well as impact testing. For the first time this included free-fall testing into water (from a height of 7m/23ft). All testing was fully instrumented and recorded using accelerometers and a range of high speed, on-board and off-board cameras. This testing was conducted both in Reflex Marine’s facility at Barcelona Harbour as well as at NASA’s Neutral Buoyancy Laboratory in Houston, Texas. The FROG-XT range is built to ISO 9001:2000 standards and is also fully CE Marked. For more information please visit: www.reflexmarine.com

Due to ongoing business growth at the Online Electronics Group (OEG), a second Aberdeen facility on Great Northern Road commenced operations in July. The new premises are in close proximity to the Group Head Office, Online House on Auchmill Road, and both buildings are strategically located alongside the main road to Aberdeen City Centre and Aberdeen International Airport. Online Valves Limited (OVL) has achieved exceptional growth since 2012 when the business was established and with the support of OEG Business Units in Houston, Dubai, Singapore and Perth, OVL is planning for trends in growth to continue both in home and overseas markets. OVL’s new premises offer a combination of modern office space, meeting and conference, storage and workshop facilities. The building, some 4,000 sq ft in area, has all of the heavy lifting and handling capabilities suitable for planned expansion in to stock holding. For more information visit: www.online-electronics.com

Reflex Marine’s latest innovation in crane transfer technology, the FROG-XT range, provides operators with the safest suite of personnel transfer devices on the market. The rigorously tested and verified devices, available in four, six and 10 person capacities, have been received positively by the industry and are already in use by major oil operators including Total. Reflex Marine has largely specialised in crane transfer and offshore access with its two key products, FROG and TORO, driving forward improved safety standards. The company has set new standards and expectations for the industry, changing the perspective of crew transfer from inherently high-risk, to being accepted as a manageable activity. It can now be performed safely and cost effectively to ensure continuity in offshore operations, either in dayto-day transfers or as a contingency arrangement.

Reflex Marine

www.the-eic.com

September 2014

EIC Member News TRAC Oil & Gas looks forward to the development and expansion of its global capability that this appointment brings to the company. For more information please visit: www.tracoilandgas.com

Thyson Technology, a specialist in integrated sampling and analyser systems, has completed the first of 28 nationwide gas-quality analyser system upgrades for National Grid. The multimillion-pound project was secured following Thyson’s role in National Grid’s Enhanced Gas Management Project (EGMP), an initiative to upgrade gas quality analysis systems at all of its sites across the UK. Over the next three years, the Ellesmere Port-based manufacturer will replace existing CV flow-weighted average sampling and analysis equipment with the latest integrated sampling and analyser systems from Orbital Gas Systems and Emerson Process Management respectively across sites nationwide. The company will also upgrade National Grid’s main analyser house at Churchover Junction near Rugby. The system will ensure that the samples used for calorific value measurements are representative of the gas flowing through the system in order to ensure accurate pricing of the commodity in line with requirements from the regulator, Ofgem. Ian Camp, Director, Thyson Technology, said: “This is a long and complex works schedule, which has seen Thyson take on all aspects of the project, including the set up and management of the site and installation of the systems. The first facility, which is now successfully up and running, is fitted with future-proof sampling technology with cutting-edge capabilities.” Thyson Technology systems allow its customers to measure key parameters of their processes by automatically delivering samples of the process material into advanced analysis tools which play a critical role in various industrial applications around the world. For more information please visit: www.thyson.com

Trouvay & Cauvin Ltd

In a further expansion of its testing capability, valve manufacturer Viar Valvole has invested heavily in a new hyperbaric chamber at its manufacturing facility in Sumirago, Italy. The company is represented by Trouvay & Cauvin. Over €200,000 have been spent on equipment within a totally new plant dedicated to hyperbaric testing of its extensive range of subsea valves. Matteo Colombo, Sales Engineer, Viar Valvole, said: “This is all part of our commitment to ensure total suitability and compliance of our products at all levels.”

TRAC Oil & Gas has announced the appointment of Bill Brown as Technical Manager. A Chartered Engineer with PCN and CSWIP Level 3 certification, Bill has over forty years’ experience in the rope access and NDT industry. Bill joins TRAC Oil & Gas’ senior management team to contribute to the inspection and testing service provision. The development of formal in-service inspection/NDT techniques together with relevant formal personnel competence levels, technical procedure writing and process evaluation are very much in keeping with the TRAC Oil & Gas philosophy. Bill is an active member of the British Institute of NDT. Recently elected to Council and as a member of the General Technical Committee of the Institute, he has made a significant contribution to the development of training and certification of personnel within the industry. He worked for many years with the Scottish branch in Glasgow, in the early eighties he initiated the North East Scotland branch in Aberdeen and, as Hon Branch Secretary, contributes to the organisation of the many technical and social events of the branch. www.the-eic.com

The new chamber has an internal diameter of 4 metres, an overall length of 6 metres with a water capacity of 49,000 litres. Current simulated depth is 400 metres, however this is expected to increase after successful completion of all initial testing. A maximum PSI of 400 can be exerted within the chamber and it can test valves to a size complete with ROV gearbox up to 30″ class 300 or 24″ class 1500. Certification is according to TüV module G. Eric Buchanan, Managing Director, Trouvay & Cauvin, commented: “Trouvay & Cauvin is delighted with the continued investment that Viar Valvole has been making over the last few years in its testing facilities. This strengthens our very fruitful relationship and gives our customers even greater confidence that we can meet their most demanding subsea specifications.” For more information contact Julie Baxendale: Tel +44 (0)161 684 7488 Email julie.baxendale@trouvaycauvin.com www.trouvaycauvin.com

September 2014

Events Diary

UK, Overseas & Training September 2014 3 Management Course: Tendering for Success Rothera Group, Kirkhill Industrial Estate 4 HSE Training: Pressure Equipment Directive 97/23/EC Nuvia, EIC Aberdeen 4 Technical Workshop: Introduction to FPSOs EIC Houston 9 Management Course: Negotiation Skills Made to Measure Training, EIC London 9 Technical Workshop: Introduction to Flow Metering Alderley FZE, Jebel Ali, Dubai 10 HSE Training: ATEX Directives 94/9/EC & 1999/92/EC SGS Baseefa, Buxton 11 Management Course: Presentation Skills Made to Measure Training, EIC Teesside 16 Technical Workshop: Introduction to Steam Turbine Technologies Dresser Rand, Peterborough 16-17 Corporate Entertainment: UK Pavilion Whisky Tasting Rio Oil & Gas, Rio de Janeiro 17 Corporate Entertainment: Rio Samba & Gas Rio Scenarium, Rio de Janeiro 17 Industry Overview: Introduction to Local Content ABS, Rio de Janeiro 17 Technical Workshop: Introduction to Offshore Wind Energy DNV GL, EIC London 18 Saudi Arabia Export Showcase AECC, Aberdeen 18 Technical Workshop: Introduction to Tier 4i/Stage IIIB Engines Finning UK, Staffordshire 18 Technical Workshop: Introduction to Gas Turbines Siemens, EIC Houston 22 Management Course: Certificate in Project Management Parallel Project Training, London 23 Industry Overview: Fundamentals of Oil & Gas International House, Dubai 23 Technical Workshop: Introduction to Control & Choke Valves Koso Kent Introl, EIC Rio de Janeiro 23 Technical Workshop: Introduction to Mechanical Seals John Crane, Pasadena 24 Indonesia Export Showcase EIC London 24 Management Course: Developing a Business Case Neos Learning, EIC London 24 Technical Workshop: Introduction to Shale Gas International House, Dubai 24 Technical Workshop: Introduction to FPSOs EIC Kuala Lumpur 25 Corporate Entertainment: Celtic Manor Golf Day Celtic Manor Resort, Newport 25 Regional Showcase: Contractors Update KMD Business Centre, Aberdeen 25 Technical Workshop: Introduction to Control Valves Severn Glocon, Gloucester 29 Azerbaijan Export Showcase EIC London 30 Technical Workshop: Introduction to Bolted Joint Integrity Hydratight, Darlaston, West Midlands October 2014 1 HSE Training: Pressure Equipment Directive 97/23/EC Nuvia, Warrington 1 Management Course: Successful Agency Agreements International House, Dubai 2 India (Power) Export Showcase EIC London 2 Management Course: Introduction to Social Media The Centre, EIC Aberdeen 3 Corporate Entertainment: 5th Annual Sporting Clays Tournament American Shooting Center, Houston 6 Industry Overview: Fundamentals of Oil & Gas EIC Houston 7 Technical Workshop: Introduction to Shale Gas EIC Houston 8 Sector Showcase: GROW:OffshoreWind EIC Teesside 8 Technical Workshop: Introduction to Energy from Waste Grundon Waste Management, Slough 8 Technical Workshop: Introduction to Gas Turbines Siemens, Yas Island Rotana, Abu Dhabi 9 Management Course: Technical Report Writing Rothera Group, EIC London 13 Business Presentation: Opportunities with Dana Gas The Palace Hotel, Downtown, Dubai 14 Industry Overview: Fundamentals of LNG EIC London 15 Management Course: Issues of UK Energy Policy Westminster Energy Forum, EIC London 16 Management Course: Employment Law bto Solicitors, EIC London 16 Corporate Entertainment: EIC National Dinner 2014 Natural History Museum, London For further information on UK & Overseas Events and Training please contact: info@the-eic.com www.the-eic.com

September 2014

Events Diary

Exhibitions & Delegations 2014

15-18 September Rio Oil & Gas Rio de Janeiro 22-26 September Overseas Delegation to Peru 14-16 October World Nuclear Exhibition Paris 13-17 October Overseas Delegation to Myanmar 10-13 November ADIPEC Abu Dhabi 12-14 November Offshore Korea Busan 24-28 November Overseas Delegation to Thailand 2-5 December Offshore South East Asia (OSEA) Singapore

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

2015

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

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

National Events 2014

Status

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

Last Chance to Book Delegate Bookings Open

London Manchester

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

OCT. 14-16, 2014 PARIS LE BOURGET FRANCE CONTACT RAELENE WILCOCK

TEL +44 (0)20 7091 8600 EMAIL raelene.wilcock@the-eic.com

www.the-eic.com

September 2014

EIC Overseas Exhibitions and Delegations

Overseas Exhibitions

Australasian Oil & Gas 2015 (AOG) 11-13 March 2015 Perth TAP funding of £2,000 for eligible SMEs Space is now booking for Australasian Oil & Gas 2015 (AOG). Australia is emerging as a hub of global energy development and has huge potential to become one of the world’s top LNG producers, with a number of basins, including Browse, Bonaparte, Canning and McArthur Basins, discovered both on and offshore. The exhibition will provide members of the UK supply chain with excellent exposure to existing and new customers resulting in a host of new business leads, and the informative events are aimed at assisting UK companies to win a larger percentage of the LNG and support services contracts in Australia. To book please contact: mark.gamble@the-eic.com Oil, Gas & Petrochemical Engineering Exhibition (OGA) 2-4 June 2015 Kuala Lumpur Convention Centre, Malaysia TAP funding TBC OGA 2013 attracted more than 29,000 visitors, with a sold out exhibition boasting 2,000 companies from 72 nations. The Government of Malaysia aims to increase its aggregate production capacity by 5% every year up to 2020 to meet domestic demand growth, while sustaining crude oil and LNG exports to overseas markets. Improved contract terms are on offer to encourage teams of operators and service companies willing to take on the challenge, as Malaysia looks to become the energy hub of Asia with plans to develop 100 marginal fields and conduct four offshore enhanced oil recovery projects. As Petronas ramps up its spending and the Government’s energy authority opens up new opportunities, Malaysia continues to grow as an attractive target for UK companies. To book please contact: camilla.tew@the-eic.com

ADIPEC 2014 10-13 November 2014 Abu Dhabi Show Preview The EIC will host 59 companies on the UK National Pavilion at ADIPEC 2014, each with their own expert products and services to showcase to the Middle East market. According to EICDataStream, there are over 1,000 energy projects proposed or under development in the Middle East region: this scale of activity underlines the substantial new market opportunities for UK businesses as the region’s energy sector continues to thrive. Please visit the UK Pavilion in Hall 8 to meet some of the UK’s most forward-thinking and innovative suppliers, as well as finding out more about the EIC and the ways that we can help with your business development activities. mark.gamble@the-eic.com

Overseas Delegations

dominant energy source for electricity, and its consumption is increasing in the industrial and transportation sectors. The growing energy demand spurred by new gas-fired power plants represents a major challenge for Thailand to keep up with demand due to its limited resources and that opens up opportunities for companies interested in that market. Thailand is also committed to increase the utilisation of renewable energy sources, setting a goal in its Alternative Energy Development Plan to increase alternative energy from 6.4% of total energy consumption in 2008 to 20% in 2022. The Plan provides support for feasibility studies, R&D, information/knowledge dissemination, and incentives to industry for the use of alternative energy technology as well as production and purchase of renewable energy. The solar and biomass sectors in particular offer interesting potential. With its strategic geographical location, Thailand is viewed as an appropriate base to access the developing Greater Mekong Region, especially the expanding Myanmar market. For more information please contact: camilla.tew@the-eic.com

Overseas Delegations are designed to enable the UK supply chain to target revenue opportunities in a supportive business environment. Overseas Delegation to Thailand 24-28 November 2014 MAP funding confirmed The EIC is organising an oil and gas trade delegation to Bangkok and Rayong, Thailand. Delegates will have the opportunity to attend organised group meetings with key local players, as well as incorporating briefing meetings presented by qualified speakers with in-market experience and the opportunity to meet with local companies. One of the fastest growing and stable economies in Asia, Thailand’s energy mix has been changing over the last two decades with the proportion of oil to total energy consumption declining. Natural gas has become the www.the-eic.com

September 2014

FROM THE ENERGY INDUSTRIES COUNCIL

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

Issue 23 n Autunm

2014 FROM THE ENER GY INDUSTRIES COUN CIL

OIL & GAS:

Russian LNG heads east VIEW FROM THE TOP:

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

Humphrey Cadoux-Hudso n talks UK nuclear

PLUS: UK Capacity Mark et

Turkey Downstream

MIDDLE EAST:

Can Iraq become the region’s top oil producer?

Cross-Sector Engageme nt for Renewables

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

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

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

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

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

EIC National Events

EIC AWARD FOR SUPPLY CHAIN EXCELLENCE 2014 SHORTLIST ANNOUNCED We are delighted to announce the shortlist for the EIC Award for Supply Chain Excellence 2014, a prestigious accolade to recognise a member organisation that has demonstrated a superior level of supply chain performance.

Pressure Tech has designed the LF690 Hydraulic Pressure Regulator to improve the reliability and repeatability of pressure control to subsea systems. The LF-690 Hydraulic Pressure Regulator is resistant to shock loads and unstable resonating, utilises ceramic seating to resist cavitation and features a lower access plug to make servicing easier. The subsea valve actuator has been adapted into a subsea version for use down to 3,000 metres.

In its second year, there has been an outstanding 20% increase in the number of entries from the inaugural year and submissions have maintained the exceptionally high benchmark set in 2013. Seven companies have now been shortlisted by our independent judging panel, who have all submitted excellent engineered solutions, products and services that demonstrate superiority within the supply chain:

Sherwin-Williams has added the Dura-Plate 301W coating to its Dura-Plate 301 range of surface tolerant epoxy coating systems. Dura-Plate 301W offers cold curing and extended recoating ability for offshore maintenance painting in aggressive atmospheric exposure conditions. Dura-Plate 301W is surface and humidity tolerant and can be applied over wet surfaces, has no dew point restrictions, will adhere to iron oxides and has high pulloff adhesions up to 25 MPa.

AMEC has developed the Track & Trace system with its technology partner DAI, to identify and track materials across the supply chain, from the initial receipt at the warehouse to various onshore, offshore or third party work sites. The technology brings a fully integrated tracking system to the oil and gas industry, while project implementation has shown that Track & Trace can reduce wasted man-hours and additional costs to zero, making it a proven time and money saving innovation.

TRAC Oil & Gas has introduced a proven bespoke Mini-ROV Inspection service for the visual inspection of FPSO hull structures to meet Class Certification. TRAC’s MiniROVs can be engineered for a number of workscopes, including water ballast tanks, shell plating checks and mooring chain checks, providing a lower risk and costeffective solution.

Cape Environmental Services (Offshore Division) has successfully developed the Torpedo, an environmentally safe internal overboard caisson cleaning system, in conjunction with Apache North Sea. Torpedo is capable of operating below sea level to remove all scale and marine growth from the caisson back to the platform deck level for disposal. In deployments to date, the Torpedo has captured up to one tonne of waste per clean, preventing waste from dropping to the seabed or being sucked into pumps.

Entries were examined by a high-profile judging panel including representatives from some of the most influential energy operators and contractors: • Mark Bradshaw, Vice President of Supply Chain & Chief Procurement Officer, BP • Stewart A Reid, Future Networks Manager, SSE Power Distribution • David Wylie, Group Procurement Director, Centrica • Chris Squires, Lead Supply Chain Engagement Manager, EDF Energy • Norman McLennan, Head of Global Supply Chain, Sasol

FoundOcean has created the Super Pan Mixer in response to the lengthy process of grout mixing of ultra-high strength grouts during installation of offshore wind turbines. The Super Pan Mixer brings the mixing rate for ultra-high strength grouts of around 6 cubic metres per hour nearer to the mixing rate of standard strength grouts at 25 cubic metres per hour. The Super Pan Mixer was deployed at the West of Duddon Sands offshore wind farm where it saved a total of 200 hours of grouting time.

The winner of the award will be announced in a short presentation ceremony in front of industry peers at the EIC National Dinner, which will be held in the Central Hall at the Natural History Museum on Thursday 16 October 2014.

Hertel has developed its proprietary Corrosion Under Pipeline Supports (CUPS) programme to provide a pipeline inspection and rejuvenation service to oil refineries and chemical plants, helping to extend the lifespan of ageing fleet by up to 25 years. The programme aims to identify and analyse pipeline integrity, specifically focusing on corrosion in the joins between pipelines and pipeline supports, in order for localised repairs to be carried out while the pipeline remains live. www.the-eic.com

September 2014

EIC National Events Drinks Reception Sponsorship Package • Six complimentary places at the dinner in a prominent position (worth £1,188) • Sole branding within the drinks reception venue • Company logo displayed on all screens throughout the Central Hall • Acknowledgement on the EIC website and Monthly News • Company logo displayed on carrier sheet of Monthly News (distributed to 2,000 people) • One full page advert in the Dinner Programme distributed to all guests • Verbal thanks from the EIC President/CEO during dinner proceedings Only £4,500+VAT

Exclusive sponsorship opportunity for ONE member The National Dinner is the largest social event in the EIC’s calendar and is once again a complete sell out. The event typically attracts 550+ of the energy industry’s senior management and key influencers offering unrivalled networking opportunities. Sponsors of the EIC National Dinner can benefit from a captive audience of high-level contacts providing a unique platform to promote their company. The event may be sold out but you can still secure a table by sponsoring the pre-dinner drinks reception, the last remaining sponsorship package. The evening will begin with a drinks reception in Waterhouse Way followed by a sumptuous three course meal within the architecturally magnificent walls of the museum. Guests are invited to the drinks reception to network with peers, clients and prospective customers. One EIC member company can take advantage of this exclusive opportunity to sponsor the reception, providing a series of brand awareness and promotional exposure opportunities.

www.the-eic.com

With thanks to our event sponsors: Gold Sponsor Silver Sponsor Bronze Sponsors To take advantage of this exclusive opportunity and check availability of individual places at the National Dinner please contact: Charmaine Atkinson, National Events Co-ordinator Tel +44 (0)1642 379 975 Email charmaine.atkinson@the-eic.com

September 2014

EIC UK News

News from our UK offices

Indonesia Export Showcase Wednesday 24 September 2014 EIC Conference Suite, London Indonesia is a key market among the ASEAN countries. With the highest gas reserves and the second highest oil reserves, after Vietnam, it plays an important role in providing for the energy needs of the region. The market is dominated by key international oil companies and a number of sizeable projects have seen movement recently. Come along and find out about the significant opportunities in the market from some of the key players within the industry. Register your interest with Jennifer Hole.

Forthcoming Events

Oman Export Showcase Tuesday 2 September 2014 EIC Conference Suite, London With over US$77.5 billion worth of planned investment in oil and gas projects, supply chain opportunities are ripe within the Sultanate of Oman. Local government has been enlisting foreign companies in new E&P projects, offering generous terms for developing fields that require the sophisticated technology and expertise of the private sector. The EIC and UKTI bring you an excellent panel of speakers, including representatives from Petroleum Development Oman (PDO) and Foster Wheeler who will detail their company’s project plans, procurement strategies and investment opportunities. This is a unique opportunity to find out more about how your organisation can take advantage of the opportunities the country has to offer to UK companies. Register your interest with Jennifer Hole.

Corporate Entertainment Celtic Manor Golf Day Thursday 25 September 2014 Celtic Manor Resort, Newport Follow in the footsteps of the legendary Graeme McDowell and his winning Ryder Cup team mates with your very own Ryder Cup experience on the prestigious Twenty Ten course at the world-class golf destination, Celtic Manor Resort. The course measures a robust 7,493 yards off the back tees and has a par of 71. With water hazards on nine of its holes, the course presents a memorable test and risk-and-reward dilemmas. For the EIC Golf Day, enjoy tea, coffee and bacon rolls on arrival, followed by 18 holes of championship golf, then relive the day’s events over a three course meal after your round. To increase your company presence on the day there is a sponsorship package open to EIC members, offering a high level of brand exposure and can be tailored to suit your requirements. The Platinum package includes: sole branding at the event, one free team place, acknowledgement on event web page and entry in the EIC Monthly News. For the full list of benefits in the sponsorship package or to book a four ball please contact Jennifer Hole.

Saudi Arabia Export Showcase Thursday 18 September 2014 AECC, Aberdeen Saudi Arabia is the world’s largest holder of crude oil reserves, and the world’s second largest crude oil producer behind Russia. Saudi Arabia’s oil and natural gas operations are dominated by Saudi Aramco, the world’s largest oil company in terms of proven oil reserves and production. Saudi Aramco is currently undertaking the Wasit Gas Development project which aims to produce and process up to 2.5 billion standard cubic feet per day of gas from the Hasbah and Arabiyah offshore nonassociated sour-gas fields to cater to domestic demand.

Gas projects in the Kingdom are increasingly important, but oil will remain king. Business opportunities for UK companies in Saudi Arabia are abundant as billions of pounds worth of investments are being planned for projects across the hydrocarbons sectors. Contact Jennifer Hole.

Scottish Contractors Update Thursday 25 September 2014 KMD Business Centre, Aberdeen A panel of local Scottish contractors will provide an update on a variety of supplier opportunities. The panel will include contractors from subsea, fabrication and project management, and the event will offer excellent opportunities for networking and one-2-one meetings. Local contractors will provide updates that focus on: • Procurement policy: how to do business with them; pre-qualification processes; sales methods to avoid • Contacts: local and global procurement contacts • Project updates: current North Sea activities; opportunities for the supply chain; global project portfolio managed locally; procurement requirements • Developing new technologies: companies plans; supply chain involvement • Challenges: what and how they are addressing them This Contractors Update will be followed by the Scottish Region Committee AGM, details opposite. Contact Sam Begg.

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

September 2014

EIC UK News Sector Showcase GROW:OffshoreWind Wednesday 8 October 2014 Wynyard Park House, Tees Valley The EIC is working with GROW:OffshoreWind to provide members with an overview of the programme it is offering designed to support UK companies traditionally in the oil and gas market to exploit the lucrative opportunities offered by the UK offshore wind market. By providing access to targeted specialist advice, £20m of RGF funding will have a transformative impact in enabling English manufacturers to win contracts in the offshore wind market. GROW:OffshoreWind offers expert intelligence, visibility of contract opportunities and access to this funding. Join us in Wynyard on 8 October to: • Learn about what opportunities the offshore wind sector can offer your organisation • Identify the areas of crossover between the offshore oil and gas industry and offshore wind – and where some of the major operators and contractors need oil and gas expertise on their renewables projects • Take advantage of GROW:OffshoreWind’s expertise and its in-depth briefing on the programme it offers • Find out how to access the funding available to companies looking to break into the sector • Hear from companies who have already reaped the benefits from the GROW:OffshoreWind programme Contact Sam Begg.

Regional Committee AGMs Thursday 25 September 2014: Scotland Tuesday 21 October 2014: Northern Region January 2015: Southern Region Would you like the opportunity to represent your company and help shape the future direction of the EIC within the region? If so, you can nominate yourself or a colleague for a place on the above Regional Committees. The EIC Regional Committees meet four times a year at various locations across the region, with representation from a wide range of disciplines. Committee meetings enable members to discuss market trends and industry news; feedback on regional activities; suggest topics and speakers to include in our events programme and also afford plenty of networking opportunities. Being part of the Committee provides an excellent platform to raise your personal and company profile. For further details please contact: Scotland: sam.begg@the-eic.com Northern Region: helen.doona@the-eic.com Southern Region: charlotte.hust@the-eic.com Azerbaijan Export Showcase Monday 29 September 2014 EIC Conference Suite, London The Caspian’s relatively untapped hydrocarbon resources, and their development and secure transit to international markets is driving growth and global interest in Azerbaijan. Due to a rapid rise in oil and gas revenues the country has one of the fastest growing economies in the world and its strategic location serves as an import/ export gateway as well as a potential transportation hub for other Caspian coastal states. With BP as the dominant operator in Azerbaijan, the majority of British companies active in the region form part of their supply chain, bringing with them a series of potentially lucrative opportunities for EIC members. Join EIC members and other invited UK companies to learn about opportunities in the region from some of the major companies doing business there, as well as the logistical and practical details of operating in the Caspian region. Register your interest with Jennifer Hole.

Corporate Entertainment EIC National Dinner Thursday 16 October 2014 Natural History Museum, London ONLY SPONSORSHIP PLACES REMAINING With over 550 energy industry professionals joining the EIC for an evening of networking over delightful food and exceptional entertainment, tables at the event are now SOLD OUT. If your organisation would like to attend the Dinner, there is still an opportunity available to attend by sponsoring the event. The EIC National Dinner provides a unique opportunity to promote your organisation’s capabilities to a captive audience of high-level, key industry contacts. This year’s Headline Sponsor is LV Shipping supported by OilCareers. com, Promat and Boustead International Heaters. Only one sponsorship opportunity remains, please see page 19. Contact: charmaine.atkinson@the-eic.com

India (Power) Export Showcase Thursday 2 October 2014 EIC Conference Suite, London India is the world’s fourth largest energy consumer with 4.4% of global consumption. Demand is growing rapidly and it is predicted that the country will move up the rankings to third place by 2020. Development is taking place across the power sector in India with a focus on renewables and conventional power, not to mention their need for metering solutions, wireless technology provision and other technology to reduce distribution losses. The EIC and UKTI work together to highlight these opportunities to our members through a comprehensive panel of speakers, who will identify the key sectors of importance and detail where planned investment will be made. With a five year plan (2012-2017), which aims to add an additional 118.5GW of generation capacity, this is a market our members should be aware of. Register your interest with Jennifer Hole. www.the-eic.com

Charlotte Hust, UK Regional Manager (Southern) Tel +44 (0)20 7091 8624 Email charlotte.hust@the-eic.com Helen Doona, UK Regional Manager (Northern) Tel +44 (0)1642 379 972 Email helen.doona@the-eic.com Jennifer Hole, UK Regional Co-ordinator (England & Wales) Tel +44 (0)1642 379 973 Email jennifer.hole@the-eic.com Sam Begg, UK Regional Manager (Scotland) Tel +44 (0)1224 628 250 Email sam.begg@the-eic.com 21

September 2014

EIC Middle East News

Middle East News

Forthcoming Events Technical Workshop

Introduction to Flow Metering Tuesday 9 September 2014 Alderley FZE, Jebel Ali, Dubai

Office News

With the seasonal break of Ramadan, Eid and the hottest months of the year now behind us, we can begin to ramp up our activities once more and look forward to welcoming the best periods of the calendar year both in terms of mild temperatures as well as business growth and development. In September we will be delivering three training courses as well as taking a delegation to Oman where the economy is experiencing a tremendous amount of investment within the oil and gas sector. On the training side, we will be offering a short technical workshop course on Tuesday 9 September that will focus on the merits of flow control. This will be delivered by Alderley who happen to be one of the world’s leading companies within this particular sector and is regarded as an expert in this field. Later this month, we will again be offering what has become our most successful training course to date. The Fundamentals of Oil & Gas takes the delegate all the way from the geological formation of hydrocarbons through to the petrol pump. It is an ideal introduction for candidates who work for companies engaged in the oil and gas sector but who know very little or understand the background to the sector that their day to day lives are exposed to. Following on from this, we will be delivering a course that will focus on shale gas. This is very topical at the moment both here, in the UK and of course, in the US. Once more, the course will cover the whole A to Z of shale explaining the background and technologies involved in this emerging sector. Oman is experiencing a renaissance in terms of investor opportunity. Notwithstanding the multibillion investment by BP in the development of the Khazzan and Makarem gas fields, there is also major infrastructure investment planned for the port of Duqm located 477km south of Muscat. For our delegation, we can expect to meet representatives from operators, contractors and the local business community who will be able to provide a full overview of opportunities and actions required in order to convert these to reliable business contracts. Looking ahead to next month, we are pleased to be able to return to Dana Gas and the opportunities that it offers the supply chain from its growing activities in the UAE, Egypt and Kurdistan. This was unfortunately postponed earlier in the year and will be at a new location at the Palace Hotel which is located in the downtown area of Dubai. Being part of the vacation season, visitors to the office have been a little sparse of late but we were nevertheless pleased to welcome John Lynch from Labtech (Specialist Services) plus Alistair Elder and his colleague Andrew Hames from G4S Risk Management. Terry Willis, Director, Middle East, Africa & CIS Contact: terry.willis@the-eic.com

Industry Overview

Fundamentals of Oil and Gas Tuesday 23 September 2014 International House, Dubai

Technical Workshop

Introduction to Shale Gas Wednesday 24 September 2014 International House, Dubai

Management Course

Successful Agency Agreements Wednesday 1 October 2014 International House, Dubai

Technical Workshop

Introduction to Gas Turbines Wednesday 8 October 2014 Siemens, Yas Island, Rotana

HSE Training

Basic First Aid Tuesday 21 October 2014 HSS Health & Safety Solutions, Dubai To register your interest or to book on any of the above courses please go to www.the-eic.com/Training or contact Helen Aittis: helen.aittis@the-eic.com

Regional Comment

South Korean contractors target Fujairah packages The UAE’s International Petroleum Investment Company (IPIC) has received bids from companies vying to construct its planned US$3.5bn oil refinery in Fujairah. Technical EPC proposals were submitted for the process units package (EPC1) on 10 July. Firms bidding for the package are thought to include GS Engineering & Construction, Hyundai Engineering & Construction, Hyundai Heavy Industries, Samsung Engineering and SK Engineering & Construction, all South Korean. There were also reports that another Korean contractor, Daelim Industrial, actually prequalified to bid for the package, but subsequently withdrew from the bidding process. The submission of technical bids has been significantly delayed, with the client extending the deadline several times after tendering the packages back in September 2013. The next stage is the submission of commercial proposals, but the closing date for this has yet to be confirmed. IPIC is planning to build a 200,000 bbl/d facility to meet rising demand for fuels in the UAE and enable the export of oil products from Fujairah’s port.

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

September 2014

EIC Asia Pacific News

Asia Pacific News

Regional Comment

SKPB announces US$700 million worth of contracts SapuraKencana Petroleum Berhad has announced US$700 million worth of contracts for its drilling rig division and a US$415 million engineering, procurement, construction, installation and commissioning (EPCIC) contract. SKPB’s order book stands at RM30 billion, up 20% from last month. Over the past few years the group has morphed into a very different entity with the acquisition of drilling assets and oil fields. SKPB has burgeoning businesses in Brazil, Central America and West Africa as well as the ASEAN countries.

Office News

CNOOC studies FLNG vessel for South China Sea Chinese energy giant CNOOC Group is studying the possibility of building a multi-billion dollar floating liquefied natural gas (FLNG) vessel, the technology that would likely be used to produce gas from the deep waters of the South China Sea. CNOOC was already talking to global engineering firms about possible joint design of the vessel. While a Chinese FLNG plant might be some years away, industry officials say such vessels could become an important component of Beijing’s strategy in the South China Sea, including in disputed waters, as the country looks to boost its offshore energy output.

EIC Asia Pacific will officially open its new offices in Kuala Lumpur in September and welcomes all members in the APAC region to drop by for a chat or utilise the available facilities. We have a large and fully-equipped conference room with capacity for 70 people. The conference room is versatile enough to be converted into a training room or a function hall for networking events. As with our other regional offices, EIC Asia Pacific also provides members with hot desks facilities with high-speed internet connection and printing and scanning services. For those members wishing to build a presence in new markets and intending to have a strong local identity from a prestigious address, EIC Asia Pacific offers serviced office facilities.

TNB signs PPA with Jimah East Tenaga Nasional Berhad (TNB), the largest electric utility company in Malaysia and also the largest power company in Southeast Asia with RM100 billion worth of assets, has signed a power purchase agreement (PPA) with Jimah East Power, whereby the latter will design, construct, own, operate and maintain a proposed coalfired electricity generating facility with a total nominal capacity of 2,000MW in Port Dickson near Kuala Lumpur. In a statement TNB said: “This PPA was a result of the Track 3B competitive bidding organised by the Energy Commission to meet the generation requirements in Peninsular Malaysia at the most competitive rates.” The PPA, which has an expected commercial operation date from 15 November 2018, governs the obligations of the parties to sell and purchase the daily available capacity, and to despatch the net electrical output generated by the facility for a period of 25 years in accordance with the agreed terms and conditions.

Forthcoming Events

EIC Asia Pacific Opening Ceremony The official opening ceremony of the new Kuala Lumpur office will be on Tuesday 9 September 2014. The event will be officiated by Dato Wee Yiaw Hin, Executive Vice President, Petronas, and a number of government dignitaries from the UK. Dato Wee has graciously agreed to address APAC EIC members on his vision for Petronas and its supply chain strategies to ensure quality and long-term sustainability. In conjunction with his address, key energy players from SapuraKencana, MMHE, THHE, Murphy Oil, UMW Oil and MMC will be attending.

Mitsubishi bids to buy Murphy Oil’s assets in Malaysia Japan’s biggest trading house Mitsubishi Corp has submitted a non-binding bid to buy Murphy Oil Corp’s (MOC) Malaysian oil and gas assets valued at about RM8 billion (US$2.5 billion). India’s state-owned Oil & Natural Gas Corp (ONGC) and Oil India Ltd are among the other suitors preparing to submit bids for MOC’s assets. It was not immediately clear if the two Indian companies would submit a joint bid as they have done in the past for overseas energy assets. MOC has interests in oil and gas fields in Malaysia, Vietnam, Indonesia, Brunei and Australia. Recently Reuters reported that MOC has invited bids for a 30% stake in its Malaysian assets.

Technical Workshop

Introduction to FPSOs Wednesday 24 September 2014 EIC Kuala Lumpur On completion of this workshop attendees will have a thorough understanding of the significant advantages FPSOs have over fixed production platforms. If you need any assistance or advice in the region or for more information about upcoming events, please contact Azman Nasir: azman.nasir@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

September 2014

EIC North and Central America News

North and Central America News Office News

Chesapeake Energy spins off subsidiary Chesapeake Oilfield Operating Company is now a new stand-alone company called Seventy Seven Energy. It is an oil field services business which offers drilling, hydraulic fracturing, oil field rentals, rig location and fluid handling and disposal to land-based oil and gas companies. It is headquartered in Oklahoma City. The split is in line with Chesapeake’s shift from natural gas drilling to liquids production.

We are delighted to have Onstream Group as a new tenant in the EIC’s Houston office. Onstream is a leading international project and technical recruitment service specialist for the oil and gas, shipping, petrochemical and energy sectors. Fast approaching is our 5th Annual Sporting Clays Tournament held in Houston, Texas. Sponsorship and teams are filling fast. If you have not yet signed up for this event, please submit your registration today. This is a great opportunity to network with other energy professionals and clients. We look forward to seeing you there.

Mexico’s CFE to tender US$2.8 billion in projects The national power company CFE will award five natural gas and electricity infrastructure project contracts by the end of 2014. These include two combined-cycle power plants, two natural gas pipelines and an electricity transmission project, all to be located in the northern part of the country near the US border. Increased natural gas imports and modernised power infrastructure would contribute to lower electricity rates. The contracts will be open to private firms in international public tenders, and the projects are expected to be operational by 2017.

Forthcoming Events

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

Industry Overview

Iberdrola to invest US$5 billion in Mexico Iberdrola is to invest US$5 billion in Mexico’s energy sector by 2019. The Spanish utility has signed an agreement with the Mexican Federal Electricity Commission, known as CFE, covering joint projects in renewable and conventional generation, electricity transmission and distribution, and gas storage. Iberdrola will also transfer technology. Iberdrola already owns 5.2GW of generating capacity in Mexico, primarily combined-cycle natural gas plants and wind farms.

Fundamentals of Oil & Gas Monday 6 October 2014 EIC Houston

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

For additional information about the EIC Houston office, our upcoming events or should you require any assistance in the North and Central America market, please contact: Nyree Carter, Regional Manager (North & Central America) Email nyree.carter@the-eic.com

Pemex, British Council sign training deal Pemex and the British Council have agreed to work together on seminars, workshops and conferences as well as post-graduate curricula in science and technology, and public policy, economics and law related to the energy industry. The purpose is to make Mexico’s work force more competitive on a global scale, to improve Pemex employees’ English language skills, and to build relationships between Mexican and British energy companies, universities and institutes.

Regional Comment

ABS and Daewoo to develop LNG-fueled drillship ABS and DSME will develop the industry’s first liquefied natural gas-fueled drillship. The JV is targeting the Gulf of Mexico as the key market, since the abundance of affordable shale gas in the US makes LNG a good marine fuel option. ABS will review DSME’s concept design and basic engineering, and perform risk assessments of all areas and configurations.

Blattner Energy expands to Puerto Rico Blattner Energy has opened an office in San Juan, Puerto Rico to serve as its hub for solar and wind power installations across the island. Blattner Energy Puerto Rico LLC will support Puerto Rico’s shift from costly, imported fossil fuels to clean energy. Blattner Energy stated that it is committed to supporting the growth of solar and wind energy in Puerto Rico. It has also developed strong relationships with local utilities, government officials and contractors. The company currently has several active solar projects in Puerto Rico.

AECOM acquires URS Corp The acquisition of rival URS will make AECOM one of the largest engineering and construction companies in the world, second only in the US to Fluor, and will strengthen sector expertise in the oil and gas, power and government services markets. The combined firm will be headquartered in Los Angeles.

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

September 2014

EIC South America News

South America News

Technical Workshop

Introduction to Control & Choke Valves Tuesday 23 September 2014 Koso Kent Introl, EIC Rio de Janeiro

Office News

The biggest event after OTC in Houston is Rio Oil & Gas, taking place at Riocentro on 15-18 September. The UK lounge is, as usual, side by side with the main operator, Petrobras, and is exhibiting 32 companies. UKTI and the EIC Rio team have put together a series of events to help members get the most out of your visit to the region. This includes several networking opportunities including a breakfast seminar, cocktail and whisky tasting receptions, a local content workshop and a corporate entertainment event to wrap up the week. Do let us know if you’re attending the show, even if only visiting, as it will be a pleasure to share what is going on. In other news, the Overseas Delegation to Peru has been confirmed for 22-26 September 2014.

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

Regional Comment

Subsea 7 hopes for Brazilian rebound in 2016 The company has said the Brazilian offshore market is expected to rebound in 2016 considering opportunities presented with the development of pre-salt assets under the production-sharing regime (such as the Búzios field). The contractor is expected to have nine pipelay vessels dedicated to Petrobras contracts by the end of 2016. New Brazilian pipelines to feature local content The government has announced that concessions awarded by the National Petroleum Agency (ANP) for the construction of new pipelines will feature local content requirements. The measure is part of the Gas Law approved in 2009, which aims to increase the gas pipeline network in Brazil. Bolivia in wind power drive The Bolivian government is keen on increasing the share of renewable sources in the country’s power generation matrix, with the goal of generating 163MW from wind farms, biomass and geothermal plants by 2025. Operations at the country’s first wind farm, which has an installed capacity of 3MW, started earlier this year and a second 21MW phase is already underway.

In July, the EIC hosted Upstream and Regulatory Aspects gathering 17 attendees. The month ended with a Business Presentation with Aker Solutions on 31 July where Fabio Pereira, Business Development Regional VP accompanied by Mr Rogerio Braga, Supply Chain VP shared with a group of 60 people a broad view of the company’s 40 years experience in Brazil, the new breakdown of the group into Aker and Akastor, their main projects and growth expected, which has resulted in new facilities in Macaé and Curitiba.

Chile to overhaul environmental licensing The Chilean government plans to modify its environmental impact evaluation system (SEIA in its Spanish acronym) in order to speed up assessment of new projects, according to the country’s environment minister. It is understood the government will welcome input from various sectors while reviewing SEIA’s procedures.

Forthcoming Events

Industry Overview

EGP installed capacity to reach 2.9GW in 2018 Enel Green Power has said that its installed capacity in Latin America will increase from 1.3GW to 2.9GW within four years. The company’s project portfolio in the region includes wind farms, solar power plants and hydro power plants in Brazil, Chile, Costa Rica and Mexico totalling 998MW.

Corporate Entertainment Rio Samba & Gas Wednesday 17 September 2014 Rio Scenario, Rio de Janeiro

Peru and Ecuador in energy co-operation agreement The energy ministries of both countries have agreed to foster co-operation in natural gas developments. The agreement will focus on seven blocks in Ecuador and Peru and work will consist of the identification and quantification of reserves and potential development opportunities.

Corporate Entertainment UK Pavilion Whisky Tasting at Rio Oil & Gas 16-17 September 2014 Rio de Janeiro sponsored by UKTI

Introduction to Local Content Wednesday 17 September 2014 ABS, Rio de Janeiro

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

September 2014

EIC Training Services

Training Services HSE Training

HSE Training

Management Course

Technical Workshop

Technical Workshop New Course Introduction to Tier 4i/Stage IIIB Engine Systems Thursday 18 September 2014 Finning UK, Staffordshire Tier 4 will become mandatory for the oil and gas sector and this workshop aims to provide delegates with the necessary overview of the emissions’ regulations and EU legislation as well as familiarisation with the Cat engine technology used by Finning UK to ensure compliance. A demonstration/workshop overview of a Cat Tier 4 engine is also included to enable delegates to familiarise themselves with the technology.

Technical Workshop

Introduction to the Pressure Equipment Directive 97/23/EC Thursday 4 September 2014 Nuvia Ltd, EIC Aberdeen This workshop will discuss the scope of the PED and responsibilities, essential safety requirements, activities and responsibilities of the manufacturer and conformity assessment bodies, as well as conformity assessment modules. The workshop will be of benefit to all engineers and quality professionals with responsibility for compliance with UK and European legislation for new items and assemblies of pressure equipment.

Introduction to the ATEX Directives 94/9/EC & 1999/92/EC Wednesday 10 September 2014 SGS Baseefa Ltd, Buxton The course consists of a number of modules which build upon each other so that following a section on the basic chemistry and physics of explosions it is clear how the various protection concepts work. The continuation of the course is concerned with how the protection concepts and the related installation rules fit with the two ATEX Directives and the IECEx international certification scheme.

Presentation Skills Thursday 11 September 2014 Made to Measure Training, EIC Teesside This course is suitable for anyone who is required to give presentations and would like to deliver them with impact. On completion of the course, attendees will be able to analyse an audience and tailor messages to aid recall, use memory techniques to look and sound professional and engage the audience and be able to make a plan to maximise the potential of the presentation and delivery style.

Introductory Certificate in Project Management (APM Certificate) Monday 22 September 2014 Parallel Project Training, London Using a combination of case-study application, exercises and practice exam papers, this course will address the techniques and soft skills necessary to be involved in the delivery of projects. This will allow delegates to take a more proactive role and make a positive contribution within any project environment, through an improved overall understanding.

Developing a Business Case Wednesday 24 September 2014 Neos Learning, EIC London This one-day course shows a variety of ways to consider and convince with a case, including: understanding and presenting the financial costs and benefits; presentation of risk and risk mitigation; a range of possible structures to present your case, and understanding what other people would want from a case. This is to ensure that you are convincing them, not merely stating things in your terms.

Introduction to Steam Turbine Technologies Tuesday 16 September 2014 Dresser-Rand Co Ltd, Peterborough The workshop provides attendees with a general understanding of the inner workings of steam turbines and the underlying engineering principles from which they are designed. The workshop is intended to provide a broad based familiarisation with steam turbine technology and engineering features, operations and maintenance concepts to engineering and management staff.

Introduction to Bolted Joint Integrity Tuesday 30 September 2014 Hydratight, Darlaston, West Midlands This workshop is designed for people who require an understanding of the theoretical, practical and management aspects of bolted joints in pressurised and structural applications. The initial part of the workshop is based on the ECITB Mechanical Joint Integrity programme and aims to give a practical appreciation of bolting issues. This is followed by a hands-on practical demonstration and a factory tour.

If you would like to arrange an ‘in-house’ course, or are interested in hosting a workshop please contact: ally.leboutillier@the-eic.com www.the-eic.com

September 2014

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

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

In association with

DISCOVER

LEARN

Project Opportunities

Conference Sessions

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> Challenges in the supply chain > The outlook for SME’s > Upstream/Downstream

Supplier strategies Project spend Timescales – when to engage What will give you the advantage

MEET One-2-One meetings with speaker companies > Source UK capability > New solutions and technologies > Network with senior executives

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

BOOK YOUR STAND NOW FROM JUST £1,700! > 9sq.m Stand: £1,700 > 9sq.m Corner Stand: £1,900

2013 speaker companies included

> Early bird delegate booking rate from March 2015: £139 > Delegate booking rate from April 2015: £179

+44 (0)1642 379975 www.the-eic.com/eicconnect

If you would like more information or are interested in becoming an EIC member, please contact: EIC Head Office and Southern Region 89 Albert Embankment, London SE1 7TP Tel +44 (0)20 7091 8600 Fax +44 (0)20 7091 8601 Email info@the-eic.com EIC Northern Region Unit 1, Business Village, Chapell Lane (South), Wynyard Park, Stockton-on-Tees TS22 5FG Tel +44 (0)1642 379 972 Email teesside@the-eic.com EIC Scotland 72 Carden Place, Aberdeen AB10 1UL Tel +44 (0)1224 626 006 Fax +44 (0)1224 637 393 Email aberdeen@the-eic.com EIC Middle East PO Box 54455, Office No 5WA 228, West Wing Building 5A, Dubai Airport Free Zone, Dubai UAE Tel +9714 299 3945 Fax +9714 299 3946 Email dubai@the-eic.com EIC Asia Pacific Lot 17-01, Level 17, Menara HLA, No 3 Jalan Kia Peng, 50450 Kuala Lumpur, Malaysia Tel +60 32725 3600 Email kualalumpur@the-eic.com EIC North and Central America Suite 850, 11490 Westheimer, Houston, Texas 77077 Tel +1 713 783 1200 Fax +1 713 783 0067 Email houston@the-eic.com EIC South America Ed. Manhattan Tower, 26th Floor, Avenida Rio Branco 89, 20040-004 Rio de Janeiro - RJ, Brasil Tel +55 21 3265 7400 Fax +55 21 3265 7410 Email rio@the-eic.com Follow @TheEICEnergy on Twitter

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