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Petroperu: IDE Technologies: Chantier Davie:

special report:

petrotrin An in-depth look at the Petroleum Company of Trinidad and Tobago

industry focus: decom north sea

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be oil & Gas | 5

Issue No.3

10 Offshore Energy - Event preview

Energizing the offshore sector

This October more than 8,500 industry professionals will congregate in Amsterdam for the fastest growing offshore exhibition and conference: Offshore Energy 2013.

10

industry Focus: 16 DECOM Offshore 2013 Overcoming obstacles

Chief Executive of DECOM North Sea, Brian Nixon, discusses the recent DECOM Offshore 2013 event and how its outcomes exceeded everyone’s expectations.

20 DECOM North Sea

20

The seas of change

DECOM North Sea is working to help drive forward an industry sector estimated to be worth in excess of ÂŁ35 billion over 30 years.

34 Optimus ( Aberdeen ) Limited

Dedicated to decommissioning

34 6 | Be oil & gas

Boutique engineering consultancy Optimus has developed a unique approach to decommissioning that is garnering growing recognition among operators.

contents special report: petrotrin

42

68

42 the business

Energy based – people powered

As Trinidad’s national oil and gas company approaches its 20th birthday it is reassessing its position in the regional and global O&G market – and investing in its future.

68 the people

People first at Petrotrin

86

It’s too easy for a small country with good resources to lose its best people as the industry develops: good training needs to go hand in hand with incentives for talent to remain – or at least return.

86 Sustainability

Energy on the side of life

It is hard for a business based on hydrocarbon extraction and beneficiation to claim green credentials – or is it? Petrotrin does so much for the people and wildlife of the Caribbean that the stereotype should be rethought.

Be oil & gas | 7

Issue No.3

94 106

americas: 94 Petroperu

Embracing the modern way

The Talara Refinery Modernization Project is Petroperu’s largest undertaking, the results of which will contribute greatly to the sustainable economic development of Peru.

106 The Petroleum Corporation of Jamaica

Caribbean treasure trove

The PCJ exists to make this idyllic island nation self sufficient in energy: to this end it is engaging other oil producing governments and offshore exploration companies to develop the oilfields that surround it.

114 Chantier Davie

More than shipbuilding

114 8 | Be oil & gas

Its ability to provide end-to-end turnkey solutions and its strategic location makes Davie an ideal partner for a range of industries.

contents

middle east: 124 Qatargas

A national treasure

124

Sitting on top of plentiful reserves of natural gas, Qatargas is the world’s largest producer of liquefied natural gas (LNG) and a shining example of excellence within the energy sector.

132 Al Delma

Training for the future

Chairman, Dr Sarmed Nima, discusses how Al Delma for General Contracting & Training Services is best placed to create a skilled local workforce in Iraq.

Africa: 140 Les Gaz Industriels Limited (LGI)

140

The desire to diversify

150

Managing Director, Jérôme Commins discusses LGI’s diversification over the years and its plan to expand into Africa’s emerging markets.

150 Egoli Gas

The clean and reliable energy option

From its base in Johannesburg Egoli Gas is helping to supply an increasing number of domestic and commercial customers with a constant supply of natural gas.

Be oil & gas | 9

EVENTS

Energizing the o

This October more than 8,500 industry pro for the fastest growing offshore exhibitio Offshore Energy ’13 15 & 16 October 2013 Amsterdam RAI | The Netherlands Founded in 2008, Offshore Energy has gone on to become the fastest growing gathering of offshore industry professionals, breaking new records with each passing year. In 2012 the event attracted 7,632 visitors representing 45 nationalities in total. Impressive as this number may be, even higher exhibitor, visitor and conference delegate numbers are expected for the 2013 edition.

But what is it that draws such a large volume of people to such an event?

In the case of Offshore Energy it is a multitude of factors including the ability to meet new prospects and generate sales leads, strengthen relationships with existing clients, introduce new products,

services and technologies, raise brand awareness, showcase career opportunities to a targeted audience and explore industry best practices.

Offshore Energy addresses the technical, operational and commercial challenges associated with future sector growth. The two-day event includes an exhibition where an expected 500 supply chain companies will showcase their products and services.

The event will see people in the fields of drilling, well completion, dredging, pipe laying, safety and environment operations, maritime services, shipbuilding, offshore contracting, offshore wind installation, subsea design, engineering and construction come together to share ideas. Next to that, there is an accompanying conference that covers key topics and solutions for the offshore community.

“Offshore Energy addresses the technical, operational and commercial challenges associated with future sector growth” 10 | Be Oil & Gas

Preview

offshore sector

ofessionals will congregate in Amsterdam on and conference: Offshore Energy 2013

Be Oil & Gas | 11

EVENTS

The Offshore Energy also address developments 2013 Conference will bring in offshore hydrocarbons together an international as well as in marine renewable energy. faculty of expert speakers, The Offshore Energy representing the entire Number of attendees Exhibition and Conference upstream value chain, to in 2012 is complemented by a discuss topical industry supporting programme developments, exchange ideas and network with over that takes advantage of 900 conference delegates. Running parallel Amsterdam’s most attractive features to the exhibition, the two day programme The official networking event is consists of high calibre panels, short organized in the afterhours of the first day technical sessions and annual meetings of of Offshore Energy. Attended by hundreds industry organizations. The conference will of exhibitors, sponsors, partners and

7,632

12 | Be Oil & Gas

Preview speakers, the evening offers an excellent opportunity to meet prospects or refresh existing business relations.

This year’s Offshore Energy Exhibition and Conference will pay particular attention to advances and best practices in risk assessment and risk management.

One of the confirmed speakers is Professor Tinka Murk who is currently developing a decision support model which can be applied in response to a calamity involving oil spills at sea. The research project is part of TripleP@Sea, a major research innovation program of Wageningen UR (University and Research centre) into the smart and sustainable use of marine ecosystems. The decision support model should make it possible to choose the best oil spill response, making use of site-specific information about ecosystems, economic functions, currents and meteorology.

Event Programme: Offshore Energy 2013 The Offshore Energy Exhibition expects to welcome some 500 exhibitors who will showcase their products and services to over 8,500 offshore professionals from over 50 nationalities. This year the event will feature international pavilions from Finland, Germany, Denmark and China.

Offshore Energy Exhibition & Conference is the fastest growing gathering of offshore industry professionals.

15 October 2013 09:30 - 10:30 Official Opening Offshore Energy 2013 11:00 - 13:00 Offshore Energy Industry Panel 10:00 - 18:00 Exhibition opening hours 10:00 - 17:30 Offshore Energy Conference 16 October 2013 09:30 - 16:30 Exhibition opening hours 10:00 - 15:30 Offshore Energy Conference 10:00 - 16:30 4th Offshore Wind Installation and Maintenance Conference Admission to the Offshore Energy Exhibition is free of charge. Some conference sessions are ticketed events.

Be Oil & Gas | 13

EVENTS

14 | Be Oil & Gas

Preview “Offshore Energy’s Integrated Event Concept brings the right people together in the right places and for the right reasons” On Wednesday 16 October the Amsterdam RAI will host the fourth edition of Offshore Wind Installation and Maintenance Conference (OWIM 2013). This year marks the first time since the conference’s inception that it has been held simultaneously with the Offshore Energy Exhibition and Conference.

By holding OWIM 2013 at Offshore Energy Exhibition & Conference, the event organisation expects to create mutual benefits for all participants involved. It is anticipated that by organising OWIM 2013 simultaneously with Offshore Energy it will offer participants in Offshore Energy an easy way to hear news of the latest developments in offshore wind. Conversely, OWIM delegates will have the opportunity to combine their conference participation with a visit to the Offshore Energy exhibition.

What makes Offshore Energy worth exhibitors’ time and money?

Offshore Energy’s Integrated Event Concept brings the right people together in the right places and for the right reasons.

• Conference sessions are programmed to ensure delegates have ample time to

visit the exhibition and conference chairs actively encourage delegates to do so.

• Dedicated functions on both event days such as the closing drinks bring conference delegates of all levels (technical sessions, C-level panels, senior level industry meetings) to the exhibition floor.

• The official networking event (max. 600 participants) brings together exhibitors, partners, sponsors and conference speakers in an informal setting.

• Offshore Energy has an active online/social media presence and represents a growing online community of professionals with whom exhibitors can communicate.

• Offshore Energy boasts premium SEO rankings that exhibitors can benefit from.

• Offshore Energy is actively promoted at global offshore events such as the Offshore Technology Conference (OTC) and Offshore South East Asia (OSEA).

For more information about Offshore Energy 2013 visit: www.offshore-energy.biz

Be Oil & Gas | 15

industry focus:

Overcoming Chief Executive of DECOM North Sea, Brian Nixon, discusses the recent DECOM Offshore 2013 event and how its outcomes exceeded everyone’s expectations 16 | Be Oil & Gas

DECOM Offshore 2013

g obstacles

O

n 27 March 2013, the Aberdeen Exhibition and Conference Centre played host to the first DECOM Offshore event. Conceived and hosted by DECOM North Sea, the aim of this interactive event was to advise the decommissioning supply chain of the challenges that operators and tier 1 contractors face when undertaking an

offshore decommissioning project.

A mixture of interactive plenary sessions, exhibition space and 1-2-1 opportunities, the event was also there to inform the aforementioned operators and contractors of the many innovative solutions and techniques that the supply chain of today has to offer to address the challenges they face and how by rallying together the industry can start to reap the rewards of the

Be Oil & Gas | 17

industry focus:

“The feedback we have had so far has been very positive indeed and bodes extremely well for future events” multi-billion pound business opportunity that is North Sea decommissioning.

“This event came together as a result of the efforts of our industry members and their desire to have a collaborative, collective view from across the sector as to what the key challenges are for the decommissioning sector and how these can be overcome,” explains Chief Executive of DECOM North Sea, Brian Nixon.

For its part, DECOM North Sea went about the task of encouraging a group of operators and contractors to put forward a comprehensive review of the said challenges and divide them into four different areas of the decommissioning programme. The first of these is the sub-surface area, which relates to work conducted below the seabed and the particular obstacles that are aligned to the plugging and abandoning of many thousands of wells in the North Sea. The feedback DECOM North Sea has received from some of these early projects indicates that they are taking longer, costing more and presenting more technical challenges than had been anticipated; and this needs to be addressed urgently.

The second area of interest relates to the subsea environment between the water line and the seabed. It is here that there is an

18 | Be Oil & Gas

enormous amount of infrastructure ranging from pipelines to manifolds, production systems, umbilicals, risers and mooring systems, all of which have to be removed and decommissioned.

The third area of debate at DECOM Offshore looked specifically at infrastructure removals and the challenges that accompany the removal of topside structures, integrated production platforms and mainly steel jackets, while the fourth looked at onshore disposal, namely the dismantling, treatment and recycling of equipment removed from the North Sea. “The strap line of the event,” Nixon continues, “was to ‘Confront Challenges and Create Opportunities’, so in addition to getting an agreed list of the challenges that we must collectively work to overcome, one of the principle aims of the event was to provide individual companies with clear understanding and confidence as it relates to the business opportunities that these challenges present. Our steadfast belief is that for each challenge our industry faces there is an equal opportunity for a certain type of company to come forward with innovations or solutions to remedy the situation and prosper from it.”

With DECOM Offshore 2013 complete,

Credit: Graham Scott, geograph.org.uk

DECOM Offshore 2013

Aberdeen Exhibition & Conference Centre

Nixon at last has the chance “I think what was also to reflect on how the event encou rag i ng,” Ni xon played out and what positives concludes, “is that we saw can be taken from it. “We a good representation of companies who are more or were absolutely delighted Delegates appeared at with not only how the event less new to the sector and DECOM Offshore 2013 who were using the event to played out but also the initial reactions we have received clarify or confirm what their business opportunities are, from attendees. Being an inaugural event naturally meant that there and then package their service offering or technology to make it absolutely suitable was an element of risk involved in staging such a large gathering, not least from a for the decommissioning sector. So the financial and reputational perspective, but feedback we have had so far has been very the results have exceeded our expectations.” positive indeed and bodes extremely well Indeed, while the organisation went into for future events.”

DECOM Offshore expecting to attract around 150 delegates, the final total was more than For more information about 200, a fact that Nixon sees as proof of the DECOM Offshore 2013 visit: overwhelming support the industry has for www.decomnorthsea.com the decommissioning sector.

200+

Be Oil & Gas | 19

industry focus:

The seas

of change Set up to tackle the main areas of weakness inhibiting UK decommissioning supply-chain capability, DECOM North Sea is working to help drive forward an industry sector estimated to be worth in excess of ÂŁ35 billion over 30 years

written by: Will Daynes research by: Adam Kalynuk

20 | Be Oil & Gas

DECOM North Sea

Be Oil & Gas | 21

industry focus:

DECOM North Sea

B

rian Nixon has spent most of his career working for major engineering contractors. Around 25 years of his career to be exact, roughly half of those years spent in the upstream, offshore sector, with the rest in the downstream, onshore market.

Following this he spent a period of some eight years as the Director of Energy for Scottish Enterprise. “In this particular role,” he states, “I held a pan-energy role setting the strategic direction for the organisations investment plans across the whole of the energy sector. In doing so my attention was drawn to the offshore decommissioning market.”

It was three years ago that Nixon was subsequently approached to head up a new organisation whose efforts would be focused solely on this particular industry as Chief Executive of DECOM North Sea. “This organisation,” Nixon continues, “came about as a result of sustained consultation with the industry, a consultation that was facilitated

by UK and Scottish government agencies that was driven by their recognition that a major programme of decommissioning activity was ramping up in the North Sea.” As Nixon points out, while the thought process behind decommissioning activities has been well documented, and there has been a long-held understanding that all offshore structures will one day have to be removed at the end of their economic lives, the industry has until now been very good at deferring the start of such work, mostly through the application of new technology or enhanced drilling techniques.

Be Oil & Gas | 23

THE QUALITY OF THE ENVIRONMENT AFFECTS US ALL, CLEAN AIR AND CLEAN WATER IS ESSENTIAL TO LIFE AND IT IS INCUMBENT ON ALL OF US TO ENSURE THAT WE DO OUR BEST TO MAINTAIN THEM

Armstrong York are driven by this commitment and by the knowledge that our country is still full of dangerous, hazardous and potentially lethal materials and is a legacy that we must not leave for our children to resolve.

The management team at Armstrong York has extensive experience of working in petrochemical and heavy industry environments providing a range of services to major oil and refinery companies within the United Kingdom. On-site support services are a critical factor in the successful relationships with our clients ensuring their core businesses are operated in a safe and efficient manner.

The provision of asbestos management support services to the petrochemical industry and other major industries can be divided into four key areas of service delivery: • Management Support • Asbestos Surveying • Air Monitoring • Response With a particular emphasis on Health and Safety Armstrong York has received major Awards and are justifiably proud that the company’s health and safety record is second to none.

For more information about the services Armstrong York offer please call Kelly Hadley on 0870 3500 375 or visit www.armstrong-york.com

industry focus:

DECOM North Sea

It was a year-long Armstrong York consultation process with For over six years Armstrong York have been working in the industry and various partnership with BP Oil UK, Petroplus & Vopak overseeing government agencies that and managing all maintenance activities and providing brought about numerous specialist services at their Coryton Refinery on Canvey recommendations about Island in Essex. Petroplus’s core business is refining crude what was needed to oil into various petroleum products making the inspection of the plant and equipment at the Refinery critical to their spur activ it y in the core business. decommissioning sector, Through the provision of a comprehensive range of vital the most important being asbestos management support services Armstrong York the belief that it required support this core business activity by ensuring that the an independent, totally Refinery operates in a safe manner ensuring all necessary focused industry forum and safety precautions and procedures are implemented that is where DECOM North maintained and continually reviewed. www.armstrong-york.com Sea came from.

Three years down the line and the organisation has evolved to the point where it has some 220 member companies and is moving forward to stimulate a vibrant, efficient and cost effective industry in order to capture the economic benefits that this substantial program of work has to offer.

“Our membership portfolio,” Nixon says, “was always intended to encompass the whole of the oil and gas industry and as such we have worked very hard to achieve and sustain this. Today our members include the

“Our membership portfolio was intended to encompass the whole of the industry” Be Oil & Gas | 25

SQUIBB GROUP Having established a formidable reputation as one of the premier demolition contractors in its native United Kingdom, Squibb Group has evolved to become a major global force across the controlled demolition and dismantling sectors, taking its knowledge and experience across Europe and into the Middle East regions.

www.squibbgroup.com

After years of successful oil and gas production, many of the structures in the North Sea are coming to the end of their expected lifespan and under current legislation, over 90% of these structures need to be completely removed and brought on-shore for reuse or re-cycling. This represents a huge challenge to the industry and Squibb Group, as an affiliated member of Decom North Sea, are working closely with industry regulators and government bodies to assess and formulate effective contracting strategies for the removal of these structures in a technically feasible and safe manner.

With extensive onshore and off-shore experience, Squibb Group are committed to developing technically innovative solutions which recognise and address environmental concerns, health and safety of personnel and costs.

• Dismantling • Decommissioning • Asbestos Removal • Demolition • Temp Works Design • Recycling • Engineering Design • Decontamination • Asset Recovery • Project Management

SQUIBB GROUP DEMOLITION CONTRACTORS UK BASED EXPERT CONTROLLED DEMOLITION COMPANY

industry focus:

DECOM North Sea

“We do a raft of different things to provide our members with a range of benefits” owners and operators of offshore facilities, major first tier contractors and a raft of specialist service providers, consultants and professional services providers.”

DECOM North Sea, being a membership organisation, strives to deliver a wide range of benefits to its individual members to illustrate to them what value they are getting from their fee. “We do a raft of different things to try and work with our members individually and collectively to provide them with a range of benefits,”

Nixon highlights. “This includes hosting networking events, conferences, what we call learning journeys and research visits to regions like Norway, the Netherlands and Denmark where we learn about decommissioning activity in these regions and Squibb Group explore the potential for Squibb Group started work in the Oil & Gas/Petrochemical collaboration and sharing of industry in the 1970’s at the Thames hinterland refineries experience and ideas.” of Coryton, Shellhaven and Canvey Island, eventually As Nixon has stated, becoming a “partner” to Mobil Oil. Amongst some of while the concept of the major projects undertaken was the demolition of a decommissioning is well Catalytic cracker column, in which Squibb became the first contractor to utilise a tower crane for such a project. known, there are few Feasibility studies have been conducted for Kinsail companies and indeed covering the removal of several gas platforms in the South few people who have Irish Sea and having recently extended its services into practical experience of a the Nuclear industry, Squibb Group have been awarded decommissioning project. a framework agreement with Magnox for demolition and “As an industry we are decontamination of their Nuclear Plants across the UK. still at a very early stage www.squibbgroup.com of learning, so in terms of

Be Oil & Gas | 27

focus

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industry focus:

DECOM North Sea

efficiency, the development of models, the beginning of Roemex Limited is a privately owned, independent oilfield cost reduction, this will only chemical company with its headquarters in Aberdeen, be achieved once we get into Scotland. We have designed, manufactured and supplied a more sustained programme speciality chemicals to the worldwide oil and gas industry of decom m ission i ng for over twenty-years. projects. There is a lot of Adding to the existing product ranges for Completion, Production and Hydrotesting operations is the NEW learning going on and that Decommissioning product range, which is aimed specifically is one of the central roles at the Decommissioning market. These products, all of of DECOM North Sea: to which are classified as ‘Gold’ and carry no substitution share experience from warning, are designed to clean, de-wax and de-scale flow past projects; share what lines and process equipment. Please contact we anticipate about future Duncan Baillie for further information. market activity; how we duncan@roemex.com believe projects are likely to be approached; what strategies will be adopted; how companies will allocate work; how they will control risks - and generally try to help new companies to the market understand what their business opportunities are.”

There is no doubt in Nixon’s mind that the next few years are going to be very interesting with the decommissioning industry set to adopt several different approaches to future projects. One of these will be what is dubbed the piece small approach, whereby once the platform and its facilities have been cleaned of all

Roemex Limited

£35 billion Estimated value of the North Sea decommissioning sector

Be Oil & Gas | 29

KDC is a market leader in decommissioning, demolition and land remediation, prioritising safe delivery and helping our customers realise value from their assets. We serve the oil, gas and process markets on shore and offshore. We are also market leaders in the chemical, pharmaceutical, nuclear; energy and natural resources, and utility markets.

We specialise in delivering “end of asset life� and land remediation solutions, providing competitive decommissioning services including strategy development, hazard characterisation, decontamination, de-planting, asset appraisal and disposal and demolition. Our focus is exemplary Safety, Health and Environmental performance to protect our own and our customers’ people and other stakeholders.

Our people make the seemingly impossible possible.

Nigel Jenkins, Sales and Marketing Director nigel.jenkins@kdc.c.uk www.kdc.co.uk

DECOM North Sea

industry focus:

hydrocarbons and hazardous waste it is The third and final approach, which in taken apart using hydraulic shears. The fact has yet to be adopted by companies but small pieces are then placed in open top is a source of considerable interest within the containers on supply boats and taken sector involves the construction of a super ashore for recycling. heavy lift vessel, which is due to come to A further option that is regularly used is market around the spring/summer of 2014. called reverse installation This vessel will have a lifting capacity of approximately where separate modules of 44,000 tonnes, thus having a platform or facility are the potential to lift complete cleaned and removed using topsides or jacket structures. a heavy lift crane. These “If this vessel is to realise are then taken by barge to meet the same fate described its potential,� Nixon says, “it Members of DECOM North Sea during the piece small could result in a significant approach. step change in how the

220

Be Oil & Gas | 31

industry focus:

DECOM North Sea industry goes about its business, with literally hundreds of man hours being transferred from an offshore environment to onshore locations. Operators clearly see a lot of benefits to such a situation, for example the positive effects it will have on safety performance, environment controls and cost containment.”

Nevertheless, such a development will not be without its complications, posing as it does a number of questions relating to how one would go about freeing such a large structure of hydrocarbons and environment and hazardous waste, and how one would get access to beginning the subsequent demolition process.

This represents just one of the many challenges that the decommissioning sector will undoubtedly have to deal with as it ramps up in the years ahead, but as Nixon concludes, the sheer amount of work and opportunities that lie ahead makes such obstacles well worth finding a way around.

“A major production platform in the central or northern North Sea can take in excess of ten years to be decommissioned. This clearly requires a great deal of work to accomplish and the scale of work ahead can really be put into perspective when you think that in the case of the Shell Brent Field alone, it is thought that the decommissioning of the field will take longer and cost more than it took to design and build in the first place.”

For more information about DECOM North Sea visit: www.decomnorthsea.com

Be Oil & Gas | 33

industry focus:

Dedicated to decommissioning Boutique engineering consultancy Optimus has developed a unique approach to decommissioning that is garnering growing recognition among operators

written by: Will Daynes research by: Adam Kalynuk

34 | Be Oil & Gas

Optimus (Aberdeen) Limited

Be Oil & Gas | 35

industry focus:

F

ew companies can provide a dedicated team-led approach to decommissioning like Optimus.

The Aberdeen-based oil and gas engineering consultancy has gone from strength to strength since it launched Optimus Decom in 2010, a subsidiary established to meet growing demand for its engineering services for the decommissioning of on and offshore oil and gas facilities.

The company has built up a select team of specialists with all of the relevant skills necessary to provide support throughout the decommissioning process, from assessing liabilities and analysing the engineering options to final decommissioning project management, and is working to develop a full turnkey solution for the decommissioning of facilities.

Stuart Heggie, decommissioning team lead, said: “Rather than acting as a small decommissioning group that pulls in specific resources from outside sources, we are building a dedicated team of people with skills in all the relevant disciplines who share a collected understanding of the industry’s priorities. We are approaching decommissioning work differently, by having focused engineers in-house rather than sourced from third parties, and the huge benefits of this are increasingly being recognised by a growing band of operators.”

The team has experience in supporting a number of operators and other energy service companies, including Talisman, ConocoPhillips, BP and Wood Group.

Optimus’ expertise in the decommissioning field led industry body Decom North Sea to select it as the only engineering consultancy

36 | Be Oil & Gas

Optimus currently performs a wide range of services associated with the onshore and offshore oil and gas industry

Optimus (Aberdeen) Limited

industry focus:

ÂŁ30 Billion Modest estimate of how much will be spent on decommissioning in the next 30 years

Optimus can offer an integrated approach to decommissioning of offshore platforms, pipelines and subsea assets

38 | Be Oil & Gas

in its workgroup set up to help streamline the approvals process by reducing both costs and timescales for decommissioning work. The new standard template devised by the group has simplified the preparation and approvals process, which is highly welcomed by the industry as decommissioning work starts to take off in the UK North Sea. More than ÂŁ30 billion will be spent in the next 20 to 30 years in the field of decommissioning, according to modest estimates. Around 460 installations, over 10,000 kilometres of pipeline and 10,000 wells are set to be decommissioned in the UK North Sea over the next three decades.

Some ÂŁ1 billion is expected to be spent annually by 2015 and, with just seven percent of the anticipated work having been completed to date, the opportunities for the supply chain are immense.

Since director Ian Bell founded Optimus in 1999, the business has achieved strong organic growth year-on-year and Bell has his sights firmly set on becoming the leading boutique engineering consultancy serving the North Sea. Today, the group directly employs 90 staff at its Aberdeen headquarters and satellite offices in Inverness in the Scottish Highlands

Optimus (Aberdeen) Limited

The team is equipped with a wide range of technical and managerial experience

and Bangkok in Thailand. It also operates a joint venture in Varna, Bulgaria.

Bell believes the firm’s growth is testament to its common-sense approach to engineering.

“An ever-growing band of energy operators are realising the benefits of working with smaller, leaner and fitter contractors, who can react quickly to deliver projects efficiently,” he said. “We are confident that, because we’re a relatively small company, we can keep control of what our guys are doing and ensure projects don’t run over on cost or timescale.

We might charge a bit more than some of the competition for our expertise, but our ability to work smarter means we save our clients money in the long run.”

Optimus provides process engineering, facilities engineering, safety and project management services and has completed $130 million of capital projects in Europe and Africa during the past five years. Its expertise in decommissioning focuses on three key areas: annual liabilities activities, pre-Cessation of Production

“The company has built up a select team of specialists with all of the relevant skills necessary to provide support throughout the decommissioning process” Be Oil & Gas | 39

industry focus:

“We are incredibly proactive when it comes to working with clients” (CoP) planning and project management.

Heggie explained: “A significant indication of our growing credibility within the decommissioning sector is our recent success in securing a contract to manage an operator’s extensive liabilities portfolio.

This all-encompassing service includes not only liability cost maintenance, but provision of comprehensive due diligence services on a regular basis for any acquisitions or

40 | Be Oil & Gas

divestments, and conducting gap analysis reports to determine the issues and implications of operations in different global regions.”

As many operators prepare for their first decommissioning, the benefits of addressing decommissioning needs in a strategic manner are evident. Heggie said: “It allows costs to be fixed, prevents a resource shortage during peak decommissioning periods and gives the much-needed clarity required to

Optimus (Aberdeen) Limited

Optimus engineers have experience of working on projects from a client and contractor perspective

allow decommissioning to form part of a company’s corporate strategy.”

Much of Optimus’ success over the years can be attributed to its ability to integrate itself seamlessly into an operator’s team. “We are incredibly proactive when it comes to working with clients,” Heggie said. “We become an extended part of the team. We seek to assist in defining the work jointly, before then identifying the most efficient and cost-effective solutions that we know from our experience will produce the best results. We continue to add value with our flexible no-nonsense approach, independent advice and knowledge of alternative technological solutions.”

As for the long-term future, the team at

Optimus is looking forward to the challenges.

Bell concluded: “We are creating a flexible company that is best placed to deliver a fit-forpurpose, cost-effective solution to our clients and, eventually, we hope the Optimus way will be seen as a far better alternative to the status quo for decommissioning work. We have put in place all the necessary building blocks to ensure we play a fundamental role in leading the way in decommissioning for many years to come.”

For more information about Optimus (Aberdeen) Limited visit: www.optimusaberdeen.com

Be Oil & Gas | 41

Petrotrin

petroleum company of trinidad and tobago

special report

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special report: petrotrin

contents

46

68

46 the business

Energy based – people powered

As Trinidad’s national oil and gas company approaches its 20th birthday it is reassessing its position in the regional and global O&G market – and investing in its future.

68 the people

People first at Petrotrin

86

It’s too easy for a small country with good resources to lose its best people as the industry develops: good training needs to go hand in hand with incentives for talent to remain – or at least return.

86 Sustainability

Energy on the side of life

It is hard for a business based on hydrocarbon extraction and beneficiation to claim green credentials – or is it? Petrotrin does so much for the people and wildlife of the Caribbean that the stereotype should be rethought.

special report | 45

Energy based –

people powered

As Trinidad’s national oil and gas company approaches i 20th birthday it is reassessing its position in the regional and global O&G market – and investing in its future

written by: John O’Hanlon research by: Robert Hodgson

d

its l

Petrotrin: the business

M

any people probably still base their knowledge of Trinidad on the novels of VS Naipaul but do please lay those aside, begs Hemraj Ramdath.

Trinidad has changed out of recognition and in any case Naipaul lived abroad for too long to really understand the country of his birth! Hemraj is VP of Strategy and Business Development at Petrotrin, one of the island’s largest employers and the largest oil and gas producer in the island, operating its only refinery. He too spent a number of years abroad working in the oil industry in the Caribbean, USA and Canada before returning to Trinidad in 2012, but now he’s back and keen to improve life for all the stakeholders.

Petrotrin is a state-owned enterprise active both in the upstream and downstream markets. It directly employs 5,500 people, and engages with at least 700 smaller local companies, supporting in all perhaps 20,000 individuals out of a population of just 1.3 million. The company produces a little over 45,000 barrels per day (bpd) of crude oil and 180 million cubic feet of gas, while its refinery has the capacity to process around 170,000 bpd, making products for a variety of local, regional and international markets from fuel oil to Aviation fuels.

These figures indicate a mismatch between the quantities produced locally and the refinery demand from the market Petrotrin serves in Trinidad itself and regionally.

This has to be filled by imports and that is costly. “One of our mandates is to increase production considerably from the present day figure. Currently we produce about 40 percent

special report | 47

K.G.C. C

• Marine Civil and Mecha • Platform Construction • Dredging • Key Wall / Jetty - Desig • Civil and Mechanical E • Welding and Fabricatin • Piling - land and offsho • Pipe Construction • Pipe Laying – On Land • Tank Fabrication • Structural Fabrication • Diving • Inspection – QA/QC, N • Labour Supply – Logist • Abrasive Blasting and P • High Pressure Water Je • Maintenance Services Electrical, Mechanical, • Equipment Rental

COMPANY LIMITED

anical Engineering and Installation

gn and Construction Engineering ng (ABS Certified) ore and Offshore

NDT Testing etc. tics, Production, Drilling Painting etting - Instrumentation, etc.

• Warehouse and Yard Rental • Ship Building and Repairs inclusive of boats and barges While these services represents the day to day operations of K.G.C. Company Limited they are by no means the extent of our services offered.

We are continually expanding into new markets and areas of operations.

Please contact our Operations Office to enquire about any services that are not listed herein.

106 Celestial Park, Vessigny Village, La Brea Republic of Trinidad & Tobago, West Indies.

Telephone: 868 651 1887 Facimile: 868 648 8159 info@kgccoltd.com www.kgccoltd.com

K.G.C. COMPANY LIMITED • Atlantic LNG Company of Trinidad and Tobago • SOOGL Antillies (Trinidad) Limited, a branch of the National Oil company of China (SINOPEC) • Pihl, Besix, E. Pihl and Sons • World Wide Equipment Caribbean Limited, a member of the Van Es Group • Tiger Tanks Trinidad Unlimited • Bayfield Energy (Galeota) Limited • Niko Resources Limited K.G.C. Company Limited was incorporated in the year 1995 in the Republic of Trinidad and Tobago. From inception our company has been servicing the needs of our dynamic National Oil and Gas Production and refining companies in the areas of civil, mechanical and marine construction projects. Our main client is The Petroleum Company of Trinidad and Tobago (PETROTRIN, TRINMAR OPERATIONS). K.G.C. Company Limited is often referred to as the preferred contractor in our area of expertise because of our resourcefulness and timely execution.

K.G.C. Company Limited has executed major projects for both local and international companies such as: • Petroleum Company of Trinidad and Tobago (PETROTRIN)

50 | special report

The Company provides support services both locally, as well as, regionally. To date, the Company has completed international projects in St. Vincent, Grenada, Suriname and Venezuela. Those projects spanned activities in the areas of: • Marine Civil Works and Offshore

Petrotrin: the business

Construction (platform construction and installation, port development, fabrication and installation of conductors, strengthening of unstable wells, platform legs, sheet piling along with other construction projects.

• Heavy Lifts -Work over / Drilling Rigs and Platforms • Sub Sea pipe laying K.G.C. Company Limited was successfully awarded several projects within the oil and gas sector of Trinidad and Tobago with Petrotrin, Trinmar Operations in 2012-2013 in the areas of fabrication and installation of conductors and decks and the strengthening of unstable wells in 2012. KGC was awarded eight (8) single well conductors and deck, one (1) double well conductor and deck, two (2) triple well conductors and deck and six (6) strengthening of unstable wells jobs all of which relates to Petrotrin, Trinmar Operation’s forward drilling program and heavily involved the utilization of various marine vessels and facilities we have available.

K.G.C. Company is also involved in ship building and repairs in Trinidad and Tobago.

To date, our company has been involved in the construction of several Aluminum Hull Passenger / Multi-purpose vessels of which

some units were sold to companies operating in the offshore Oil and Gas in the Gulf of Mexico and Trinidad and Tobago and we have also performed repairs on various tugs boats and barges.

Being a “turn key” company has made K.G.C. Company Limited exceptional in the execution of all our projects both locally and regionally as our operations are governed by safety, quality and efficiency of which our esteemed clients continuously realize the cost effectiveness of their projects.

E. info@kgccoltd.com www.kgccoltd.com

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ILLUMINAT We are in the Business of Information, Communications and Technology (ICT), by providing products, services and solutions that help to effectively manage, develop and troubleshoot businesses. As a member of the Neal and Massy Group of Companies, one of the largest conglomerates in the Caribbean, Illuminat (Trinidad & Tobago) Limited (ILLUMINAT) and its founding companies have pioneered the field of Information Technology and Communications in the region, for almost five decades. We design, implement and maintain systems that allow our customers to exploit technology and achieve quantifiable improvement in business efficiency.

Our vision, expertise and formidable network of global partners, both empower and enable

our clients to combine the essentials of operational effectiveness with the information and agility required for strategic positioning in a dynamic environment. Today, ILLUMINAT is helping more Governments and Businesses in the region to become information-driven, than any other IT company. Driven by passion and laced with expertise, we provide the support that large customers like Petrotrin need and we are proud to count ourselves as one of their suppliers. We endeavour to continue providing them and all our customers with the type of excellent service and products for which we have become widely known.

In the world of Technology Expertise, We are ICT. E. marketing@illuminatnm.com

WEEKLY| |532 specialBEreport

Quality & Safety First

• Civil, Mechanical & Electrical Construction for the Energy Sector • Refinery Plant Maintenance & Fitting • Pipelining: Steel, PVC and HDPE Design & Construction • Housing Design and Construction • Oil & Gas Field Operations: Drilling, Production and Well Abandonment • Environmental Engineering: Produced Water Treatment, Bioremediation, Oil Spill Response Equipment

Ph: (868) 647 4484, 357 0904 Fax: (868) 647 4416 e-mail: tnrcoltd@yahoo.com www.tnrcoltd.com

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T N RAMNAUTH T.N. RAMNAUTH & COMPANY LIMITED is a private limited liability company founded in 1980. The company was born out of the heartland of petroleum drilling, production and refining activities in Trinidad and Tobago. T. N. Ramnauth has offerings to the major oil, gas, petrochemical and utilities sectors by providing technical and construction services in a broad spectrum of Civil, Mechanical, Electrical and Engineering.

We are continuously upgrading our systems and procedures to deal with the rapid changes taking place in technology and engineering.

Quality, Safety and mitigating Environmental impacts are imbedded in all our work plans.

To achieve this, we provide training and

development interventions for our personnel in operational procedures. We also embrace appropriate tools and equipment to ensure construction capabilities.

Our Site Operations are supported by our workshop facilities located at Teemul Trace, Clarke Road, Penal. We have three (3) covered buildings with workshop space of 56,000 sq feet. In addition, we have 70,000 sq feet of uncovered storage yard, fenced and secured. Our main offices provide 8600 sq feet of modern office accommodations.

E. tnrcoltd@yahoo.com www.tnrcoltd.com

WEEKLY| |552 specialBEreport

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SCHLUMBERGER IN TRINIDAD The story of Schlumberger in Trinidad & Tobago is a long one. In fact it is 80 years old this year.

Trinidad’s characteristic geological complexity played a significant role in the establishment of well-logging operations in Trinidad, the official debut of which was made on 19th July 1932 in the Palo Seco No. 126 well for British Controlled Oilfields. After several years of deliberation and negotiation, the Schlumberger brothers were permitted to try their ‘Boîte Magique’ to help ease the task of finding and quantifying potential hydrocarbon reservoirs. In the following year, Schlumberger set up permanently and during the Nazi occupation of France, the T&T government invited Schlumberger to move its overseas headquarters to offices in San Fernando in 1940, which it did, albeit on a temporary basis.

Since those early pioneering days,

Schlumberger has enjoyed a long and successful relationship with all of the many predecessor companies that currently comprise the Petrotrin we know today.

Presently, Schlumberger through its own growth over the years provides a full range of services and solutions delivered by a skilled and predominately local workforce of some 350 persons to help Petrotrin meet their goals.

As part of this symbiotic relationship, Petrotrin has provided a fertile training ground allowing “Trinbagonian” employees to gain valuable experience which many have taken abroad working as expatriates in other countries.

As we proudly celebrate 80 years here in country, we remain committed to further fostering our relationship with Petrotrin and indeed to the people of Trinidad and Tobago for many decades to come. www.slb.com

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THEO RICHARDS GENERAL CONTRACTOR LIMITED Petrotrin has become our main client through the years beginning with my deceased father Stephen Richards who was a Sole Trader and at his passing; I had decided to register a limited Liability company in 1998 in the name of Theo Richards General Contractors Limited.

Working at Petrotrin and providing the satisfactory Services, that they required has given us a competitive advantage in the energy service sector and we have been extending our services to other Oil and Gas companies in Trinidad and Tobago.

We continue to foster a working relationship with Petrotrin for their company success and for our company’s advancement.

I want to thank Petrotrin for the opportunity to tender for jobs as a registered company, for the moral support given by persons through lectures and other meetings.

May God continue to Bless Petrotrin and Theo Richards General Contractors Limited.

E. itor1@yahoo.com

Theo Richards General Contractor Limited Theo Richards General Contractors Limited is a Service type company providing Services to our main client Petrotrin for over 35 years.

We provide the following services to Petrotrin Point-a-Pierre Refinery Area, Palo Seco fields and Petrotrin Trinmar Operations and other areas: • Welding and Fabrication • Civil Works • Building Construction and Maintenance • Hydro blasting and Painting • Pipefitting, Grass cutting and other Related Services Email: Itor1@yahoo.com Telephone: (868) 648-0596

Petrotrin: the business

Tank farm in harmony with the landscape

If Petrotrin has a physical hub it is the which Petrotrin sells in Trinidad, a further Pointe-à-Pierre refinery, or rather complex 30 percent to the Caribbean market and the because the refinery is just one part of it. remaining half internationally. However the Pointe-à-Pierre is Petrotrin city, built for market is constantly changing and Petrotrin and populated by the company’s employees is now in the final stages of a further massive and incorporating a hospital, extensive staff upgrade costing $1.2 billion.

The Clean Fuel Upgrade is designed to facilities and even a wildlife sanctuary. It is close to the island’s second city San Fernando. meet the stringent specifications now in The refinery itself was place internationally, says brought to a high standard in Ramdath: “We had to change 2000 following a $355 million our production processes to investment programme, has get better, cleaner fuels that been continuously upgraded meet new environmental since then, and is currently targets.” A key component the source of downstream of the Clean Fuels Upgrade, Onshore wells in Trinidad the Gasoline Optimization products, 20 percent of

4,000

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Our construction services performs many projects in the energy area but our skill and experience does not limit us there for we also cater to the commercial market as well. Trinidad is seeing a lot of construction activity in both the private and public sector and we are well poised to be a major player in the many large projects that are available.

Our manufacturing company specialises in steel products supplying the many hardwares across the country.

With a large and modern manufacturing facility, KP’s Manufacturing makes high quality items that compete with the imported goods and are truly world class.

The South-M Hardware serves the Barrackpore community and environs.

South-M Construction Services Ltd. 159 Rochard Douglas Rd | Barrackpore | Trinidad W.I. Phone 868-299-0032/34/35 | Fax 868-654-2666 | www.southmgroup.com

Petrotrin: the business Program (GOP) is one of SOUTH-M CONSTRUCTION SERVICES LIMITED (SMCSL) several strategic initiatives With headquarters in Barrackpore and a 24 year history, being implemented to ensure SMCSL is an active participant and contributor to the local Petrotrin’s survival in the energy sector. We have partnered with major oil and gas face of changing market leaders including Petrotrin and our goal is to exceed the demands. The project was customer expectations of every client. embarked upon in response Our employees are distinguished by their functional and technical expertise combined with their hands-on to challenges facing the experience. Our core activities include New Pipeline refinery and to improve Construction, Welding, Fabricating, Horizontal Directional overall profitability and Drilling, Sandblasting, Painting and Tank Foundation competitiveness through Construction. the replacement of ageing SMCSL with its extensive industry knowledge is the ideal equipment, improved plant choice for the execution and delivery of your project. reliability and integrity. www.southmgroup.com It’s important, he says, for the company to shift its emphasis from lower value, high volume products such as fuel oil to higher margin products like aviation fuel and low-sulphur diesel. “Our ultra low sulphur diesel (ULSD) plant, will come on stream at the end of this year, and it will give us nice clean low sulphur diesel that meets the stringent new diesel quality specifications covering sulphur and aromatics content. By the end of this year we will be well prepared for getting into any market.”

The object of the exercise is to get a better

“By the end of this year we will be well prepared for getting into any market”

The Continuous Catalytic Regeneration (CCR) unit

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Petrotrin: the business return on the products, a higher margin and a chance Concepts and Services is a leading technical services to be competitive in high spec company, providing dedicated and focused services markets, he stresses. The to industry in Trinidad and Tobago and the Caribbean refinery upgrade addresses region. Our specializations are Project and Construction what he calls the top-of-theManagement, Planning and Scheduling Services, IT barrel processes, however Consultancy, Laser Scanning, Turnkey Contracting - E&I, Civil, Mechanical and Flow Control Products. that’s only half the story, Petrotrin is a key client with personnel who demand Hemraj Ramdath continues. reliable, cost-effective solutions while maintaining quality The company sells a great and world class health and safety practices. deal of fuel oil, some 50,000 The challenge for Concepts and Services is to exceed bpd, and to get that amount Petrotrin’s requirements. Petrotrin’s rigorous standards out into the market means have ensured our continuous improvement. that some of the time it is www.conceptsandservices.com realising less than the crude price. That is clearly unsustainable, he emphasises: “We are now also looking at a bottom-of-the-barrel solution – the heavy end if you like – to see how we can better utilise that fuel oil and convert it into higher value product. This will mean further investment of up to $2 billion over five to six years but once we have finished that the entire plant will be a world class facility and tailor made to meet our goals.”

The demand for fuel oil will still have to be met, but it will form a smaller proportion of Petrotrin’s output, he predicts.

Another opportunity that excites him is the Trinidad government’s $2.5 billion highway

Concepts and Services

$1.2 billion Investment in current refinery upgrade Onshore well drilling in Fyzabad

special report | 63

Petrotrin: the business

“We must keep asking, where are the opportunities for us to increase our business?” project, which provides the opportunity to upgrade the bitumen plant at Pointe-à-Pierre, not just to supply this project but to sell to the rest of the islands.

Beyond its own shores, Petrotrin is looking to expand its bunkering business, supplying fuel oil to the shipping industry. “We do about 25 percent of the bunker of all the ships passing through Trinidad but we believe we could do far better. We are limited right now

Overlooking the water treatment plant

because we have just the one vessel so we are looking at acquiring another tanker or a larger vessel to do some bunkering outside of Trinidad.” Active discussions are taking place, he reveals, Cudjoe Construction and with companies based in Industrial Services Limited (CCISL) Cudjoe Construction and Industrial Services Limited (CCISL) Panama to set up facilities is an Industrial Maintenance firm based in Trinidad and there and take advantage of Tobago. Incorporated in 1977, CCISL continues to supply inthe Panama Canal expansion process and turnaround services to a number of the nation’s that is taking place. wide and varied petrochemical service suppliers. Given this, This makes sense despite the company has developed various competencies in the what he said about reducing maintenance and rehabilitation of refinery and process plant the overall proportion of equipment. Specialties include, but are not limited to: • Heat Exchangers: Testing, Extraction, Tube Expansion, fuel oil sold. “The bottom Tube Renewal line is that we are now • Vessels: Grit Blasting, Coating open for business. We must • Heaters/Boilers: Refractory Works, Tube Renewal and Testing keep asking, where are the • Rotating/Reciprocating Equipment: Alignment, Base opportunities for us to go out Preparation, Vibration Analysis and increase our business?

• Columns: Tray Removal/Repair Traditionally we have kept www.cudjoeconstruction.com to the role of a manufacturer,

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A

C U T

A B O V E

T H E

R E S T

Inland and Offshore Contractors Ltd. is a diversified Transportation and Service Company.

Today the Business is structured into Three (3) Divisions, the Marine Services Division providing Transport and Towing Services to Offshore Installations, the Water Blasting/Pumping Division, a versatile Water Jetting application for Commercial, Municipal, Industrial and Marine applications and last but not least the Trucking Division offers a wide range of Lifting and Transporting of Cargo services.

Telephone: 868 677 2093 | Email: iocl@tstt.net.tt www.iocltt.com

DUMORE ENTERPRISES LIMITED Dumore Enterprises Ltd. is the largest gasket and bolt supplier in Trinidad and

Tobago, committed to quality and service. Our services division provides heavy equipment transport services, crane, vehicle leasing, equipment rental and yard storage facilities.

We are strategically located to provide customers with access to our services and the widest selection of gasket materials and fastener stock ready for immediate delivery.

Our locations feature leading technology equipment and a manufacturing facility capable of producing engineered products to custom specifications serving the refining, chemical, power generation and distribution, petrochemical (upstream and downstream), food processing, water and pulp and paper industries.

Our business model offers direct interface with the end user and has an active role in assisting customers with personalized local service. This localized personal service allows Dumore the opportunity to be a part of the problem solving and decision making process and contribute to the customers’ success.

O i l f i e l d & I n d u s t r i a l S u p p l i e s | V e h i cl e R e n t a l s | Tr a n s p o r t a t i o n | H e a v y E q u i p m e n t | E q u i p m e n t R e p a i r

“Working together, delivering superior service to our customers.”

Contact us today to find out how Dumore Enterprises can serve you. www.dumore-enterprises.net

Petrotrin: the business exploring, refining and Inland & Offshore Contractors Ltd selling to brokers in the Inland & Offshore Contractors Ltd have been supporting market. I think we are ready Petrotrin’s operations for the past twelve years supplying to take a step further down Offshore and Land Transportation, Hydro-blasting and the value chain. Panama is Tubular Maintenance services. Currently we supply one opportunity because the twenty marine vessels ranging from 50 to 150 feet market is huge, not only for providing transport, emergency response services and drilling support. We have also provided tubular bunkering but also for other maintenance using our water-blasting units. In addition products as well. Bunkers we supply articulated boom cranes ranging from six to allow us to enter the market twenty ton lifting capacity, tractor trucks, forty and fortyand provide a base to expand five foot trailers and mobile cranes. Our company stands into the other opportunities committed to providing an exemplary service as described that may exist, and there in our motto, ‘A cut above the rest’. are plenty of these including www.iocltt.com gasoline and aviation fuel, which we already produce.”

All of this activity represents a large-scale rationalisation, he says finally: it is not a bid to actually increase the size of the organisation or the throughput. It is unlikely the capacity of the refinery will be much increased, he suggests. Upgrading of its two crude distillation units (CDUs) might result in an extra ten percent being squeezed out but the primary goal is to produce, as far as possible from local crude, a consistent 168,000 bpd of high end product – product that meets international standards, can be taken into any market, at margins that contribute more Workers in action strongly to Petrotrin’s bottom line.

“Bunkers allow us to enter the market and provide a base to expand into the other opportunities that may exist” special report | 67

People first at Petrotrin

It’s too easy f with good re people as the

written by: J research by

for a small country esources to lose its best e industry develops

John O’Hanlon y: Robert Hodgson

Petrotrin: the people

B

ecause Petrotrin is government owned it has to do what is set down in its mandate. At the top of its agenda is to maximise Trinidad & Tobago’s resources of gas and oil, and as far as possible reduce the country’s dependence on imported hydrocarbons. Petrotrin is after all an important part of the Trinidad and Tobago economy. The country is the leading Caribbean producer of oil and gas, and is heavily dependent upon these resources.

However Petrotrin has another mandate: to develop the nation’s skills and its culture, and this secondary goal is as close as the first to the heart of its VP of Strategy and Business Development Hemraj Ramdath. The company’s first responsibility, he believes, is to the people of Trinidad and Tobago, many of whom are employees of Petrotrin or otherwise dependent on it. All in all, he estimates, 20,000 Trinbagonians may fall under this umbrella, and in addition there are many fenceline communities that fall under the company’s influence. The term fenceline communities is normally associated with negative impacts in the proximity of industrial operations such as exposure to hazardous emissions, but Petrotrin sets a much more positive example, and Ramdath is determined that will continue.

One thing that concerns him is the brain drain out of Trinidad. “We have been a good training ground for many of the multinationals,” he points out ruefully.

Trinidad has plenty of oil industry heritage to draw on, having been formed from a process of nationalisation culminating in 1993 with

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SUPERIOR SERVICE, EXCELLENT QUALITY, ON TIME PERFORMANCE

Vincent Rampersad & Sons Ltd.

Is a contracting company that is privately own and run by family, Our company has been very reliable and specialize when it comes to Tank Cleaning, Transportation of Chemicals and any hazardous Liquid and hazardous solid Substances, Cleaning of Oil Spills, Heater Treater, Oil Savers and API Pits, rentals of both industrial and heavy equipment and has been trusted by Petrotrin for over 35years with an excellent relationship.

Vincent Rampersad and Sons provide a wide range of services such and specialize in Landscaping, Civil Engineering and Works, Cranes Rentals, Industrial Painting, Reinforce Concrete, Earthworks, Plant Fitting, Pipe Fitting, Tanks - Isolate Venting and Cleaning inclusive of Oil pit and Barges, High Pressure Water Blasting, Hauled Services of Hazardous and Non - Hazardous both Liquid and Solid Waste, Oil Recovery Facilities ,Waste Management Facilities, General Trucking Services inclusive of Tankers, Mobile Air Compressor rental, Pump Rental, Sandblasting Service, Heavy Construction Equipment rentals, Man Lift Rental, Office Containers Rentals, General Equipment rentals, Tank Building and Repairs, Suppliers of Labourers Skills and Un-skills.

Vincent Rampersad & Sons Ltd has over 35 years experience in the following industries CONSTRUCTION, OIL AND GAS, TRANSPORTATION, EQUIPMENT RENTAL, ENEGRY SECTOR, and ENGINEERING SECTOR Vincent Rampersad & Sons Ltd has a high standard for Health, Safety and Environment policy in place and also has a highly qualified list of Operators and dedicated staff.

Vincent Rampersad & Sons Ltd. has a 24 hour stand by policy and can respond to any job immediately.

Telephone: 868-648-2643/868-297-8168 Fax: 868-648-3946 Email: administration@vrs-tt.com

LAND & MARINE

CONTRACTING SERVICES

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We specialise in: Onshore & Offshore work • Including Diving & Underwater Services • Barge Rentals • Welding & Fabrication Civil Works • Equipment Rental & Mechanical Works

#95 Alta Garcia Trace, San Francique Rd., Penal

Telephone: 1 868 647 1885, 338 4009, 488 1949, 336 7935, 298 3315

Contact us today and put your company in the spotlight!

vincent@bus-ex.com

Petrotrin: the people

ICT training room

the merger of the state owned downstream though they may have excellent theoretical and upstream oil companies Trintoc and knowledge, lack the practical skills and Trinopec, themselves created from assets of experience they need. To fill the gap and try to retain some of the best talent Petrotrin companies like Shell, Texaco and BP. These companies ran apprenticeship intends to restart apprenticeships and increase on-the-job training, schemes that worked like which is already available to an in-house pipeline of expertise to the refining and all employees operational sections of the It’s an assault on multiple business. But those schemes fronts to address not only the were discontinued, leaving problems of people gaining the company to fill its junior experience in Trinidad only Number of Petrotrin employees management posts with to move abroad to take up university graduates who, posts in an industry that is

5,000

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“We have to recognise that some people are better at one thing, some another, and create a career path for each individual�

A fire drill during HSE week

72 | special report

Petrotrin: the people hungry for talent but also the loss of experience caused by the company’s seniorityheavy workforce. “We have so many people retiring with 25 up to 40 years’ service behind them. That makes it a priority to do better forward planning to prepare the company for the next ten to 15 years.”

Petrotrin is seen as a preferred place of employment, with excellent benefits for employees, a chance to learn and job security. However the culture of the company and the ethos of a workforce that is strongly unionised have perhaps applied a brake to modernisation, Ramdath fears. It is good to be fair and even handed, but a way needs to be found, he believes, to identify people who are particularly gifted, enthusiastic or experienced, incentivise them and offer them a fast track to promotion. The traditional route to the top has been through a sequential process of promotion. This is a luxury the country and the company can no longer afford if the brightest and best are to be retained in the industry and given a reason to stay in Trinidad and Tobago – and if they have already left, to return. “If we want to move to the future we have to recognise that some people are better at one thing, some another. Create a career path for each individual. In that way we will be better able to serve our people as well as the business

The Petrotrin Learning Centre

- and ultimately the country and its future.

That is our goal after all!”

And though it’s a long time since the legacy companies that were united well before Petrotrin came into being the legacy of their different cultures continues to be felt within the company. Take the Trinmar division, incorporated into Petrotrin in 2000.

Trinmar is necessarily separate, covering all the offshore operations. Petrotin’s offshore licences have just been renewed on the back of a commitment to increase production from the Soldado fields to the south of Trinidad by more than a third, from 21,000 bpd to 35,000.

There had been a decline in production in the Trinmar fields during the period 2005 to 2010, but the recent discovery at Cluster 6 together with investment in an aggressive

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C E R L

C E R L

C E N T R A L E Q U I PM E N T R E N TA L S L I M I T E D Founded over fifty years ago, Central Equipment Rentals Limited (CERL) has built a renowned reputation for bespoke service, solutions and quality in the service industry in Trinidad and Tobago. Our services are provided to various industries which encompass the energy, manufacturing, hospitality, commercial and retail in both public and private sectors. CERL services include but are not limited to: • Automotive Rentals • Automotive Fleet Leasing • Garbage/ Waste handling Solutions to Collect, Contain & Transport • Transportation of Water & Road Wetting • Equipment Rentals • Vegetation Control • Courier and Chauffeur Services • Road / Construction Sweepers & Litter vacuums • General Transport Our personnel are highly motivated professionals who have the experience, knowledge and dedication to complete jobs with efficiency. All of our services are accomplished with our in house personnel and equipment thus maintaining quality and control of the service provided. Through our expertise, personnel and investment we promote, maintain and deliver quality services and solutions. We have a practiced Healthy, Safety and Environment Policy in the organization and became Safe to Work (STOW TT) certified in September 2012.

Tel: 868-636-2535, 9118 Fax: 868 636 2540 E-mail: info@centralequipmentrentals.com

Petrotrin: the people

Training room at the Learning Centre

drilling programme at to retain a somewhat Trinmar has helped to renew insular culture, not free the Government’s confidence of the consciousness that in the Company’s operations. it contributes the lion’s In 2012, Petrotrin engaged share of crude. Its payroll in a $109 million drilling system is even located on programme to drill 21 wells a separate platform – but Invested in a drilling in the Trinmar acreage. “We that is changing. “We have programme at the are planning a lot of new been making great efforts Trinmar acreage wells and the reactivation to integrate Trinmar more closely, with common logos, of old ones and looking at reactivating up to 60 wells within the next common vision, common IT platforms and financial year.” common branding,” comments Ramdath.

Petrotrin’s offshore production is twice However this is more than just a matter as much as that realised from land wells. of changing the systems within Petrotrin.

Because of this and because it is operating at The influence of the majors is still felt in the some distance from the Refinery Operations fenceline communities that the company at Pointe-à-Pierre, Trinmar has been able touches – up to 70 of them across the

$109

Million

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27, Gulf View Villas | La Romain, Trinidad, WI. Phones: 1-868-658-0466; 1-868-354-9577 | E-mail: admin@lmcsltd.com

LMCS Limited provides project management, engineering design, procurement and construction services (inclusive of diving-related underwater services and marine logistics support) to the Trinidad and Tobago State Oil Company, Petrotrin, and other oil and gas, petrochemical, government and private sector industries in Trinidad and Tobago as well as in the wider Caribbean region. LMCS Ltd owns a wide range of marine/heavy equipment inclusive of crane barges, offshore supply vessel, crew boats, excavators, tractors, piling hammers and crawler cranes.

LMCS Limited has expanded its range of services and is now the Authorised Distributor of Earth ReClaim™ and Sea Reclaim™ products for the immediate and effective reclamation of oil/petroleum product spills on hard surfaces or on water. Earth ReClaim™ and Sea Reclaim™ products are composed of natural and modified-natural scoriaceous nanomaterial found in the earth. The products are green, environmentally friendly, non-polluting, non-toxic and GRAS (Generally Regarded As Safe), and are recoverable and recyclable.

LMCS Limited is supported by our strategic partners to handle integrated construction and/or technology projects.

Shacon Limited • Upscale resort development projects • Upscale executive housing projects • Commercial/Public Sector Buildings

SOFTWARE AND SOLUTIONS LTD • Employee Administration Products • Easipay 2000 Payroll System • Easitrac 2000 HR Management System • Jantek Automated Time Recorder Systems • Biometric and/or Card Access Control Devices • Software Development • Systems Integration Services • Payroll Outsourcing Services • Software Sourcing and Acquisition

Phone: 1-868-620-4382 Phone/Fax: 1-868-665-8502 E-Mail: shacon@tstt.net.tt www.tobagoresortsonline.com

95, Edinburgh Village | Chaguanas, Trinidad, WI Phone: 1-868-671-7124 E-mail: sharada@softwareandsolutions.net www.softwareandsolutions.net

Petrotrin: the people

LMCS LIMITED LMCS Limited provides project management, engineering design, procurement and construction services (inclusive of diving-related underwater services and marine logistics support) to the Trinidad and Tobago oil and gas, petrochemical, government and private sector industries in Trinidad and Tobago as well as in the wider Caribbean region.

LMCS Limited has developed a unique relationship with Petroleum Company of Trinidad and Tobago Limited over the past sixteen (16) years in the areas of marine construction and maintenance (new-builds, re-builds and repairs). LMCS Limited has provided services on Petrotrin’s facilities including subsea and surface pipelines, subsea steel and concrete piles, berths, jetties and other marine infrastructure.

LMCS Limited offers a comprehensive package of services designed to allow our Clients to work with us to create a solution/ project that LMCS Limited can carry forward to successful completion.

LMCS Limited possesses the competitive advantage of having qualified and experienced human resources who continually develop and implement innovative, creative, cost effective and efficient solutions in response to the unique challenges faced by its Clients, and delivering on its objectives under difficult circumstances.

LMCS Limited owns a wide range of marine/heavy equipment inclusive of crane barges, offshore supply vessel, crew boats, excavators, tractors, piling hammers and

crawler cranes. LMCS Limited has grown sufficiently to supplement its primary target market segment of marine-based works with land-based engineering and construction projects.

Additionally, LMCS Limited has expanded its range of services and is now the Authorised Distributor of Earth ReClaim™ and Sea Reclaim™ products for the immediate and effective reclamation of oil/petroleum product spills on hard surfaces or in water.

Earth ReClaim™ and Sea Reclaim™ products are composed of natural and modifiednatural scoriaceous nano-material found in the earth. The products are green, environmentally friendly, non-polluting, non-toxic and GRAS (Generally Regarded As Safe), and are recoverable and recyclable.

E. admin@lmcsltd.com

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Our Services: • Civil/Structural Design and Consultancy • Project Management • Process Engineering/ Piping Design • General Construction Management Services

Tel: 1-868-222-2511 Email: jade.brown@browncoengineering.com www.browncoengineering.com

TESCO-Thomas Electrical Sales Corp is extremely proud to be

TESCO-Thomas Electrical Sales Corp 8603 South Dixie Highway, Suite 400 Miami, FL. 33143 Tel: (305) 740-0005 | Fax: (305) 740-0006 E-mail: tesco@tescopower.com

celebrating 20 years of providing the Best World Class Engineered Solutions for all our valued customers electrical requirements. From the Power Plant – to – the Residential Meter and beyond, TESCO’s experience, knowledge, innovative concepts and most importantly the strong desire to supply the absolute best service to our customers is included in every opportunity TESCO pursues.

TESCO is especially proud to have had the opportunity and pleasure to support our friends at PETROTRIN over the years with their excellent efforts to maintain and expand their leading role in the development of the energy sector in Trinidad and Tobago.

TESCO sincerely thanks and congratulates PETROTRIN as we move forward together to an exciting future.

Petrotrin: the people southern part of the island.

“We have to be sensitive Brown Company Engineering Limited (Brown Co.) is an because we established these engineering/consultancy firm located in Trinidad West Indies facilities maybe 60 years ago.

(W.I). We are strategically located in one of the most thriving People have encroached on Caribbean economies in terms of oil and gas, and other the facilities with housing, energy industries. Our team possesses vast experience in recreational facilities and design and project management of medium to large scale marine/offshore projects. Our expertise covers both greeneven schools. So we have to field and brown-field offshore structural projects. Our be more careful now in how services include Civil/Structural Design and Consultancy, we engage our stakeholders.”

Project Management, Process Engineering/Piping Design and One benefit that is a model General Construction Management Services. of good practice is seen in www.browncoengineering.com Petrotrin’s medical facilities.

It may seem odd for a company to have a parallel medical system to the national health service, however Trinidad and Tobago operates under a two-tier health care system, in which private and public health care facilities work alongside one another. “40 or 50 years ago when Texaco was operating here, the hospital system was not as improved as it is today,” explains Ramdath.

“It could not respond to major emergencies like burns that might happen in the refinery and other industry-specific hazards. So a 46-bed hospital was set up on our site.

Additionally we have seven other medical centres around the country. The refinery is located at Pointe-à-Pierre but all the outside

Brown Company Engineering Limited

30,000 People under Petrotrin’s healthcare umbrella Staff at Agustus Long Hospital

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Petrotrin: the people development work is in the Damus southern part of the country Damus’ involvement with Petrotrin goes back to the about 200 km away from the early days of our company history, in the 1970s when we hospital. So, Petrotrin has rendered our services on and off-shore to the region’s major set up these small medical oil companies like Amoco, Texaco, Trintoc, Trinidad Tesoro centres or clinics that can and Trinmar what is today called Petrotrin. treat most casualties and In 1977 Damus designed, fabricated and erected two of the first 500kbbl tanks to be built locally. stabilise them before moving Today we continue to pride ourselves in partnering with to the Augustus Long hospital Petrotrin as a major mechanical contractor on some of at Pointe-à-Pierre, close to the largest projects of the Gasoline Optimization Program our headquarters.”

(GOP) such as: The healthcare covers • The 28,000 bpd (CCR) Continuous Catalytic Reforming Petrotrin’s 5,000 employees • The 300.(STPD) sulphuric acid regeneration plant and their dependents, making • The 10,000 bpd Alkylation unit • The EPC of 9 tanks with 462,300bbl capacity for a total of up to 15,000 in various products all, to which must be added • Brownfield EPC services; replacement of Tank 181 upward of a further 15,000 (300kbbl) bottom and foundation using the jackup system retirees and their families www.damusgroup.com also covered by the scheme as well as employees of companies on the growing industrial estate at Pointe-à-Pierre. These people’s needs are similar because they are mainly working in related industries such as chemicals, methanol production or fertilisers. “Providing this level of healthcare at subsidised costs to the employee is a major ongoing cost to the

“Providing healthcare is one reason for petrotrin’s status as a preferred employer”

The new operating theatre

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Engineering Excellence

in Trinidad and Tobago Plant Services: Insulation and Refractory Blasting and Coatings Valve Repairs Welding and Fabrication

Energy Solutions: Renewable Energy ESCO CDM (Clean Development Mechanism) Consultancy

Construction Services: Turnarounds

Specialised Services: Compression Generation Electrical & Instrumentation Automation Pumping Solutions Predictive Maintenance Inspection & Testing

TOSL provides leading technical and quality related services and products to develop, manage, engineer, build, and operate to the requirements of our customers in the areas of Engineering Services, Products and Equipment.

TOSL ENGINEERING LIMITED 8-10 Maharaj Avenue Marabella Trinidad, West Indies Voice: (868)299-0360 Fax: (868) 653-5404 Email: sales@tosl.com Web: www.tosl.com

Petrotrin: the people

TOSL ENGINEERING LIMITED EXPLORES NEW HORIZONS of being a best in class high-quality and cost-effective alternative ensuring environmentally sustainable development.

In 2012, TOSL embarked upon an initiative to expand its operational capabilities to better serve the needs of the industrial sector both at the local and regional levels.

To this end we assessed and enhanced our operational model, invested in capital infrastructure, expanded our team to include highly accomplished and experienced project professionals, and pursued strategic partnerships with international principals for the purpose of positioning ourselves to TOSL Engineering support major brownfield maintenance and Limited (TOSL) has capital projects within an EPC type model. been serving the TOSL registered the country’s first ever Trinidad and Tobago successful Clean Development Mechanism energy sector successfully for over 30 years in the areas of (CDM) project with the United Nations Framework Convention on Climate Change Engineering, Specialized Equipment Supply (UNFCCC) for its client, The Petroleum and Industrial Services. TOSL comprises Company of Trinidad & Tobago (Petrotrin). of ten (10) operating divisions providing The CDM project involves the capture and services including but not limited to Project sale of fugitive gas emissions vented from Management, Mechanical Construction & on-shore oilfields in Southern Trinidad.

Maintenance, Electrical Instrumentation The project’s capital improvement installs and Automation, Scaffolding, Refractory, new gas gathering and pre-processing Insulation, Blasting and Coating, Reliability infrastructure. The CDM project is eligible Services, Inspection, AutoCAD and Design for carbon credit funding as a result of its Engineering. Our unique value is thereby validated UNFCCC registration. The CDM derived from our diversity and leveraged program has a 28 year life for oil and gas in part by the wealth of knowledge and producers both locally and internationally experience of our management and and positions both Petrotrin and TOSL to workforce working in the Upstream, take advantage of this opportunity.

Midstream and Downstream Sectors of the Energy Industry in Trinidad & Tobago. Our E. sales@tosl.com vision is to continue providing exceptional www.tosl.com services to our clients with the objective

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Show the world what your company has to offer with our tailored packages

Seen www.bus-ex.com

Petrotrin: the people

Agustus Long Hospital

“Trinidad and Tobago, it transpires, is a country crammed with talent, but with a huge diaspora that gives its people international connections” company, but worth it because I think it is one reason for Petrotrin’s status as a preferred employer,” he adds. Other reasons might be the incentives to staff in terms of insurance, pensions, housing subsidies, mortgage subsidies and the like.

Trinidad and Tobago, it transpires, is a country crammed with talent, but with a huge diaspora that gives its people international

connections. For historic and geographic reasons these connections developed strongly with USA and the UK: the O&G industry has been another channel for people to move away. But from now if Hemraj Ramdath has his way career development in the home industry will be a realistic option while senior and experienced people will have a better reason for coming back.

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Energy on the sid

It is hard for a business based on hydrocarbon extraction to claim green credentials – or is it? Petrotrin does so muc and wildlife of the Caribbean that the stereotype should b

written by: John O’Hanlon research by: Robert Hodgson This is a caption this is a caption

Petrotrin: Sustainability

de of life P

and beneficiation ch for the people be rethought

etrotrin’s VP of Strategy and Business Development Hemraj Ramdath is keen on advancing the company’s sustainability policy and proud of the company’s achievements so far. The Trinidad government has a policy to replace gasoline and diesel with compressed natural gas (GNG) and supporting that with tax incentives. Petrotrin is right behind that policy, and currently converting on a trial basis around 55 of its vehicles, with plans to convert its entire fleet, and encouraging its employees to do the same with their private vehicles. It was

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Shandong Kerui Petroleum Equipment Co., Ltd. Located in Shengli Oilfield, Dongying,- the second largest oilfield in China, Shandong Kerui Petroleum Equipment Co., Ltd. comprises a comprehensive and multinational petroleum industrial group, specializing in the Research, Development & Manufacture of upstream Oil & Gas Equipment.

With more than 4,000 employees serving in 30 countries worldwide, our company is dedicated to developing international markets and meeting our client’s demands. Some of Kerui’s branch offices include Venezuela, Brazil, Colombia, Trinidad & Tobago, Peru, Argentina, Suriname, Cuba, United States, Canada, Syria, Turkmenistan, India etc.

As a leader in the Oilfield Equipment Industry, Kerui’s products are certified to meet the highest standards including: API, HSE, GOST, DNV, IADC and ISO9001:2000 standards and are of the best quality. We are devoted to being a comprehensive solution provider of drilling equipment and engineering services, and have also established a high-quality after-sales service network which has been set up in more than 30 countries globally to deliver a diversified portfolio to our customers.

Our work ethic and dedication to our clients needs is strongly evinced by our company motto, “Better Service, Higher Quality” Our Equipment Line includes: • Land drilling rigs • Truck-mounted drilling rigs • Workover rigs • Drilling rig parts and tools • Oil production Machinery equipmentPumping Units, Oil Well Pump, Steam Injection Boiler, Wellhead Assembly etc • Oil field Piping Systems –Tubing , Casing, Pipeline, Drill Pipe, Collars, Fittings, Sucker Rods, Sucker Pumps etc • Oil field Special Purpose Equipment – Nitrogen Generation Units, Natural Gas Compressors etc • Offshore Drilling Platform Engineering and technical service • Industrial chemicals • Drilling and Workover Services Tel: (868) 372-2266 / (868)477-4960 / (868) 366-5532 E-mail: amla@keruigroup.com or wuxm@keruigroup.com

www.keruigroup.com

Petrotrin: Sustainability not easy: “We have had some Kerui group challenges in getting vehicles With more than 4,000 employees serving in over 30 that are OEM approved for countries worldwide, Shandong Kerui Petroleum Equipment CNG conversion, and another Co. Ltd, established in 2001, is a pioneer in Manufacture, limiting factor is the lack of R&D of Oilfield & Natural Gas Equipment & Services.

CNG filling points.

Kerui’s branch offices include Venezuela, Brazil, Colombia, The CNG programme is just Trinidad & Tobago, Suriname, Cuba, United States, Canada etc. Our product lines span from Drilling Rigs, Nitrogen one of a number of projects Generation Units, Natural Gas Compressors, Steam Injection that excite him. “Another Boilers, Tubulars etc. to Engineering & After Sales Services. major programme we have As a registered vendor of Petrotrin, we provide not only the just done is a UN clean highest quality products & service but also the advantage development mechanisms of customization of equipment whilst keeping quality, cost (CDM) project linked to the effectiveness and efficiency at the forefront of every order.

Kyoto Protocol on climate www.keruigroup.com change. The company is spending around $25 million on capturing, scrubbing and selling to the grid all the gas currently being released or flared from the company’s wells. “The CDM project is the first in the Caribbean, and we have a target of reducing CO2 emissions by 400,000 tonnes per annum in the first instance – more when we roll it out to our partners.” There will be only a modest income from the sale of the gas, but it will cut Petrotrin’s carbon footprint dramatically, and even more importantly, he says, earn for the company carbon credits that can be traded

“I think we can do more to leverage the involvement we have with the Wildfowl Trust”

Petrotrin is heavily involved in many activities targeting environmental sustainability

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PROCESS MANAGEMENT LIMITED Process Management Limited is the leading provider of Process Automation, Instrumentation and Asset Reliability solutions throughout Trinidad and Tobago, Barbados and Suriname. We continuously strive to enhance our customers operations by improving reliability, throughput, availability, quality and safety. As the Local Business Partner for Emerson Process Management, we have adopted many of Emerson’s procedures that complement our local capabilities and provide a wealth of knowledge for our clients. Over the last 17 years we have grown rapidly and gained a reputation in the industrial sector that signifies technical competence, superior products and service excellence. Our commitment to our people, community and business partners continue to evolve and adapt to the increasing demands of our

Providing Industry Expertise in: • Turnkey Automation Services • Control Valve Engineering and Service • Instrumentation and Analyzer Solutions • Custody Transfer Measurement Verification and Maintenance • Asset Reliability Services • Machinery Health Management • Educational Services

The Fisher Authorized Service Provider for Trinidad & Tobago, Barbados and Suriname Tel: (868) 636 1541 / (868) 679 0602 Email: processmanagement@pml.co.tt www.pml.co.tt

customer’s dynamic environment.

In the field of Automation we have become an integral part of the operations of Petrotrin and many of the major Oil, Gas and Petrochemical companies in Trinidad and continue to build a responsible and sustainable organization for the good of our people and the companies we serve.

Training and Certification are key enablers for providing technically competent people and the following in-house offerings is evidence of this: • Fisher Approved Service Provider (FASP) facility • Scottish Vocational Qualified (SVQ) Measurement Technicians • Emerson certified training capability • Control Systems engineering and construction capability • ISO certified Vibration Technicians and Analysts E. processmanagement@pml.co.tt www.pml.co.tt

Petrotrin: Sustainability

Petrotrin is committed to co-existing with nature

internationally. CO2 injection could later mop oil out of the ground, and getting it refined up surplus gas, at the same time extending and shipped. “Our predecessor companies had a great record in the ‘H’ and ‘S’ parts of the output of some of the older wells.

Furthermore, Petrotrin is turning to solar HSE: The ‘E’ was left to chance, but not any power for its external lighting, its car parks, more! Environment and social responsibility bus shelters and other facilities to improve its are hardly separable he believes. Perhaps the green credentials. It is also conducting studies most exciting example is the Pointe-à-Pierre on water use and water recycling. “We use Wildfowl trust, established in 1966 on 25 about eight million gallons a hectares of Petrotrin’s land day of water, for things like beside the refinery. It’s now cooling and steam generation an internationally known and we recycle about 25 bird sanctuary with a great percent of that now: we aim record on breeding declining to increase that to 50 percent, species – and a much-used which I think we can reach resource for schools. in about five years.” In the Cor porate social Annual CO2 responsibility is a nettle he is past, he says, the company reduction target has been focused on getting keen to grasp. Petrotrin has a

400,000 tonnes

special report | 91

Petrotrin: Sustainability

25 hectares Size of Pointe-à-Pierre Wildfowl Trust site good record of giving to its stakeholders and the wider community but he wants that to include the giving of expertise as well as money. “We have a golf course, a swimming pool, and many other facilities. The opportunity is there to bring kids in and have camps, with coaches for cricket, soccer or tennis, golf or swimming.

Now we want to really engage the communities, and not just hand out subsidies! For example we engage the services of a petting zoo during our school awareness efforts, to help kids to understand animals. We have taken that a step further – not just looking at them but learning how to take care of them too. If we can give compost and fertiliser to the schools so they have their own gardens that will help engage them even further!”

It’s all about balancing the need to make profit – corporate sustainability if you like – with the need to do the right thing for society and the environment. The two need not conflict. Hemraj Ramdath clearly loves being back in Trinidad and Tobago but his years abroad have made him more objective.

“I would like to see a little more action.

Ducks at Wildfowl Trust

For more information about Petrotrin visit: www.petrotrin.com

special report | 93

Em

The T larg grea

94 | Be Oil & Gas

Petroperu

mbracing the modern way

Talara Refinery Modernization Project is Petroperu’s gest undertaking, the results of which will contribute atly to the sustainable economic development of Peru

written by: Will Daynes research by: David Brogan

Be Oil & Gas | 95

Petroperu

I

t was in July of 1969, during the presidency fuel sulphur content to a maximum of of Juan Velasco Alvarado, that Petroperu 50 ppm, thus requiring the company to was created based on La Pampilla essentially formulate an entirely new Sate Refinery and expropriated project that would comply with the said refineries. In the more than four decades standards. This is what inspired the since the company has been a major company to embark on its mission to contributor to the country’s economy. develop a modern Talara Refinery with fuel This comes in spite of the considerable production which meets the quality requested political, administrative and macroeconomic by the country’s legal regulations and challenges it has faced over the years. From the international markets, within a framework outset Petroperu was tasked with operating of social responsibility, environmental and maintaining virtually every complex oil protection and adequate profitability.

A megaproject of engineering and patch in the country by itself. It was thanks to the skills and dedication of its Peruvian construction, the modification involves the workforce that is was able to continue expansion of existing units at the refinery as well as the installation of deliver i ng pet roleum products without any supply new process units, services disruption, thus becoming and other requested facilities.

The project itself exists the most important stateowned company in Peru. within a framework of social Today Petroperu’s largest responsibility, environmental The year that Petroperu project is the Talara Refinery protection and the generation was formed Modernization Project, of market opportunities and has been given the name an undertaking that the company highlights as an example of a “Proyecto Modernización Refinería Talara” successful South American mining energy (PMRT). Upon completion it is expected to and minerals project that is increasing its result in cleaner air due to the reduction in influence locally and internationally. sulphur content in diesel and petrol, clean The company’s involvement with the waste gas emissions from the refinery, reduced Talara Refinery dates back to 1998 when liquid fuel imports and an improvement in it first contacted Texas based consultancy the commercial balance of hydrocarbons.

Bonner & Moore to carry out a study The social and environmental impact of to help adapt the refinery to current needs, the project is expected to benefit the Peruvian improving the quality of diesel fuels population on a number of levels. The Talara with a maximum sulphur content of economy will be boosted by additional direct 2000 parts per million (ppm). and indirect works, especially during the The passing of legislation in March construction period and this will undoubtedly 2006 brought in rules regulating diesel result in better economic opportunities

1969

Be Oil & Gas | 97

Making our planet more productive Operating in Peru since 1996, Praxair is now the country’s leading manufacturer of industrial gases—supplying atmospheric, medical and specialty gases nationwide.

Its eleven industrial gas facilities are strategically located across the country, helping ensure supply reliability for all customers. Praxair also offers a wide range of technologies that can help customers increase efficiency, improve productivity and enhance environmental performance. In short, Praxair provides the products and services that are making our planet more productive.

www.praxair.com

PRAXAIR

With its 50-year track record of serving the refining industry worldwide, Praxair has the experience to help refineries succeed in today’s challenging environment. For decades, Praxair has supplied hydrogen gas to produce cleaner burning transportation fuels and applications technologies that help refiners improve their processes. Praxair’s innovative industrial gas-based application technologies help our refining customers to do more with less, from enhancing product performance to reducing environmental impact.

Refineries are facing a number of challenges today. Government regulations are tightening fuel specifications and standards. The crude slate has become heavier and increasingly sour, requiring additional process flexibility.

These demands have intensified the search for more efficient ways to use and manage hydrogen supplies. For this reason, Praxair

1 | BE| Be WEEKLY 100 Oil & Gas

delivers the expertise and innovation required to optimize efficiency and reduce costs associated with refinery hydrogen use. Praxair’s optimization technologies and experience can reduce volumes by recovering the hydrogen and heavier hydrocarbons from refinery fuel gas, saving both hydrogen and fuel costs. This reduces operating and capital costs, enhances margins and decreases greenhouse gas (GHG) emissions.

Managing the fuel gas system is integral to running refineries at optimal efficiency.

Inefficiencies can often occur when the fuel gas and hydrogen systems are too closely linked, with purges and bleeds from the hydrogen system going directly to fuel gas and significantly impacting both its quality and quantity. Praxair has the in-house expertise to analyze such systems and find technologies to meet overall energy and hydrogen

PETROPERU Petroperu

requirements. In addition to conventional methods, Praxair refinery gas-processing technology enables the use of problematic fuel gas streams as feed for a steam methane reformer or as fuel for a gas turbine. This leads to higher returns, since those streams no longer need to be blended or segregated, something that further exacerbated “fuel gas long” issues.

Praxair is focused on designing and constructing the most effective industrial gas plants, on time and on budget, using stringent industry safety standards. Praxair uses its extensive operating experience to design and build its hydrogen facilities to the highest standards, ensuring the utmost in safety, reliability and efficient supply. We also strive to enhance supply reliability and offer customers a high level of operational flexibility by investing in necessary infrastructure where

possible, including pipelines and byproduct sources.

In addition to Praxair’s hydrogen expertise described above, Praxair has also developed expertise in various technologies for refining industries. One such technology increases the throughput of fluid catalytic cracking (FCC) units that are air blower limited, cyclone velocity limited, coke burn limited or wet gas compressor limited by injecting oxygen into the combustion air. Praxair has installed more than fifteen FCC oxygen enrichment units around the world. Global refiners are discovering how oxygen enrichment in their FCC increases the unit processing capacity with a small capital cost investment. This is accomplished while realizing other significant operational advantages. www.praxair.com

BE &WEEKLY Be Oil Gas | |1012

Petroperu

The Talara refinery

for Talara. Furthermore, local businesses in Talara and other parts of Peru will be tasked with providing goods and services to the Refinery during the construction and operation phases, providing economic opportunities to many people.

From the point of view of environmental feasibility, the Talara Modernization Project

will improve the air quality of Peru, as well as the surrounding water quality, and it will not release oily or solid waste which is harmful for the environment. The proposed updates and the new units that will be added to the Refinery will be designed to comply with or exceed World Bank environmental rules, national rules and all local regulations.

“Today Petroperu’s largest project is the Talara Refinery Modernization Project” Be Oil & Gas | 103

El Milagro refinery

“This project will help guarantee that Petroperu is able to continue creating significant value for Peru and its citizens for many years to come” The environmental investment projections are included in the general capital investment required for the modernisation. The current estimate is that the capital investment for the environmental part will be of approximately $2.7 billion. This amount includes the contingency factor or the location factor.

It cannot be denied that it has been a long and challenging process to get the project to

104 | Be Oil & Gas

the point where it is today. It was recognised from a very early stage that such a large scale project would require a significant investment of time, technology and capital resources.

Based on a feasibility study carried out on behalf of Petroperu by Arthur D’Little it was clear that the costs of the project would be substantial and that even when taking into account its use of a fast-track engineering and

Petroperu

The Conchan refinery

construction strategy it would not be able to commence operations until 2016.

While these factors may have put off a number of operators or companies, the fact is that the numerous social and environmental benefits that the modernization project will bring to the region make it very much worth the time, cost and effort of all concerned.

This project will not only result in bringing in an attractive economic return, but will also help guarantee that Petroperu is able to continue creating significant value for Peru and its citizens for many years to come.

Today the implementation of the modernization project is well under way, with the preliminary engineering and technology phase having commenced at the end of 2009.

Worker inspecting the pipeline

Come the estimated culmination of the undertaking in 2016 it is expected to have achieved a number of positives, not least of all increasing the value of Petroperu as a business. On top of this the project will have transformed the Talara Refinery into one of Latin America’s most modern, increased its production capacity by approximately 50 percent and most importantly of all it will have done more to promote the sustainable economic development of the region than perhaps any project of its kind before.

For more information about Petroperu visit: www.petroperu.com.pe

Be Oil & Gas | 105

Caribbean treasure tr

The Petroleum Corporation of Jamaica (PCJ) exists this idyllic island nation self sufficient in energy: to it is engaging other oil producing governments and exploration companies to develop the oilfields that

written by: John O’Hanlon research by: David Brogan 106 | Be Oil & Gas

Petroleum Corporation of Jamaica (PCJ)

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Petroleum Corporation of Jamaica (PCJ)

J

amaica is not lacking in natural contracts, explore for oil and develop Jamaica’s resources – for example it is a petroleum resources in the national interest. major exporter of bauxite, the raw In 1995 PCJ’s remit was extended to develop material for aluminium – but it indigenous renewable energy resources. It is not currently known as an oil has established a large biodiesel project with producer. In fact it has to import its oil at a the aim of eventually producing 16.5 million rate estimated at 80,000 barrels a day if oil gallons of biodiesel from crops that grow well on based products like asphalt, are included. Oil nonproductive or marginal land. It also built a to fuel cars boats and aircraft is imported from wind farm at Wigton near Manchester, Jamaica Mexico, Venezuela and other neighbouring in 2004. This facility saved the country $5.3 Caribbean countries. million in 2011/12, proving that renewables Should oil be found in significant quantities could be an important contributor to cutting in Jamaican waters – something that appears oil imports, and more wind capacity is planned almost certainly just a matter from both PCJ’s facility and of time – there could hardly private generation companies investing into the market. be a more attractive location However the holy grail for in the world – the Caribbean is eminently accessible to the PCJ lies offshore in the North American markets and exploration blocks lying to international trade routes; the the south of the island and government is encouraging, selling this potential to the Gross oil-based imports keen to negotiate terms that world’s exploration majors is to Jamaica are attractive to international the work of Brian Richardson, oil & gas exploration and PCJ’s Oil & Gas Exploration production companies; the legal system is Manager. Though a good deal of due diligence democratic and founded on British law; and needs to be done, a large amount of money of course Jamaica is English-speaking. Add to spent on drilling and further geophysical that the fact that it controls a major potential and geological survey work in the waters hydrocarbon reserve that has seen very little surrounding the island. The work done in exploration over the last quarter-century and the 1970s indicated that there were reserves it begins to look like the next big thing. of hydrocarbons, he says, but early surveying The Petroleum Corporation of Jamaica just scratched the surface. It did however was set up in 1975 to find ways of reducing produce some very encouraging results: of Jamaica’s dependence on imported energy. It eleven exploratory holes that were drilled is a statutory corporation mandated to take onshore and offshore only one failed to show part in every stage of hydrocarbon trade, from hydrocarbons present. “In the last five years exploration to retail. Specifically the government or so that work has been updated to refine gave it the exclusive right to manage import our knowledge of where these reserves lie. In

80,000 BPD

Be Oil & Gas | 109

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Petroleum Corporation of Jamaica (PCJ)

particular, work has been done in the south- production sharing contracts (PSCs), east section of the Jamaica oilfield which government instruments that allow an oil indicated that there are huge sedimentary company to prospect, subsequent profits being structures in that sector.” shared between Jamaica and the company.

A preliminary bid round in 2004 resulted Richardson is on a mission to market this in two junior exploration companies coming untapped reserve. Last November PCJ’s Oil on board, whose involvement effectively & Gas department was at PETEX in London: cut the perceived risk facing investors to in February 2013 it was the turn of North an acceptable level. “We are now confident American Prospect Expo (NAPE), held twice that over the next two to yearly at Houston, and in three years we will be able March the focus will shift to convince one of the majors back to London where the to take an interest in Jamaica APPEX conference is taking and commit to a drilling place. “The take away is that there is increasing interest programme.” The first step in Jamaica’s offshore, and is to dispose of the rights in 12 months we expect to licences on the available Size of the Joint see that interest translating blocks in and around Regime Area into activity on the ground.” the Walton, concluding

52,000 km2

Be Oil & Gas | 111

Once people understand the structure, then interest will accelerate, he believes. His department’s aggressive marketing strategy includes reigniting old leads that have gone dead because the picture has changed rapidly. Recently he has taken calls from 25 organisations or companies that had been unaware of the opportunity. “I have hanging in my office a picture of a rig that was installed offshore in 1984 – I am committed to seeing a new rig out there three to five years from now!”

If you look at Jamaica on the map, it is surrounded by successful oil economies.

Nicaragua, Venezuela, Colombia and Honduras are cases in point. Jamaica buys energy at preferential rates under various local agreements, and a Joint Regime Area between Jamaica and Colombia, situated south of the Pedro Bank was established in 1993. In 2008, an agreement was signed between the two countries for the conduct of surveys relating to the hydrocarbon potential of the 52,000 square kilometre area. PCJ is actively looking to establish government-to-government level agreements with those neighbours with which it shares the Caribbean Basin. “We want to build on their strengths and also provide our data into the melting plot to understand the Caribbean

basin hydrocarbon scene. Every piece we can place in the Caribbean jigsaw puzzle helps to reveal the whole picture!”

It is also benchmarking a country that has highly relevant experience though it doesn’t share the same waters. Uruguay, like Jamaica had a 20-year hiatus in its exploration programme and followed a similar marketing trajectory in 2008 before hitting success in awarding exploration

“Work has been done in the south-east section of the Jamaica oilfield which indicated that there are huge sedimentary structures in that sector” 112 | Be Oil & Gas

Petroleum Corporation of Jamaica (PCJ)

blocks. The Uruguayan government recently signed offshore exploration and production deals with British oil firms BG Group and BP, Ireland’s Tullow Oil and France’s Total.

The companies concluded 30-year concession contracts in April last year for eight oil blocks - three each for BG and BP and one each for Tullow and Total. Between them they have committed to investing a total of roughly $1.56 billion. “The Uruguayans are helping us a lot with their geophysical and geological knowledge and theirs is a scenario that we would dearly like to emulate here!”

Any oil company wanting a head start in a relatively unexploited region that nevertheless is within easy reach of the infrastructure and skills the industry needs, not to mention the prime global markets of the Americas, would

be well advised to take an early position in Jamaica. Brian Richardson points out that indicated oil reserves range between 500 million and a billion barrels, with anywhere between two and four trillion cubic feet of gas. More detailed geological and geophysical work will be carried out over the coming twelve months, followed by drilling a couple of years down the line. At the end of this process lies a commercial bonanza for the oil companies, and the realisation of PCJ’s raison d’etre – to make Jamaica an oil exporter rather than an importer.

For more information about Petroleum Corporation of Jamaica (PCJ) visit: www.pcj.com

Be Oil & Gas | 113

114 | Be Oil & Gas

Chantier Davie

More than shipbuilding Davie is more than just Canada’s largest shipbuilder – more than any kind of shipbuilder: its ability to provide end-to-end turnkey solutions and its strategic location makes Davie an ideal partner for a range of industries from oil & gas to defence

written by: John O’Hanlon research by: Celina Bledowska

Be Oil & Gas | 115

Chantier Davie

T

he Davie shipyard at Lévis, just director of that company and Davie’s present across the Saint Lawrence River CEO Alan Bowen, conducted a thorough due from Quebec City, traces its origins diligence exercise before committing to their back to 1825 when it was founded bid, which was accepted in November 2012. by an English sea captain called The yard has had many different owners, Allison Davie. Over its long lifetime it has but none with the experience this team built more than 700 vessels and drilling and had in working with investment companies production platforms and seen shipbuilding and turning around distressed shipbuilding technology develop from wood and sail. During assets. “Before we bought Davie we spent World War II, Davie built 35 warships (mine about nine months actually at the shipyard sweepers, corvettes and destroyers). Davie has with a team of about ten people with a mixed also fabricated numerous other products for a set of skills – technical, legal, commercial, variety of industries including financial, operational and power, defence and transport. the like – looking to see what It is not altogether clear had gone wrong before, and how we could make it better.” how Davie got into such Ultimately, he points out, a mess, culminating in its failure to be selected for the Davie is the largest shipyard Canadian Government’s $33 in Canada, one of the biggest billion National Shipbuilding in North America, and one Cost of each vessel Davie Procurement Strategy (NSPS) of the largest general steel is building for Cecon in 2011. Not for the first time fabrication sites with coastal in its long and largely very access in Canada. It may not distinguished history it had been rescued from have built a ship since 1997 but it has completed administration, this time by a joint venture some very big projects, equivalent in scale to a between the leading Canadian engineering new build, including the conversion of LASH group SNC Lavalin, a Korean shipbuilder and carrier to a DP pipelay vessel as well as a major the Canadian Upper Lakes Group. However upgrade for a Petrobras semi-submersible when it failed to get any part of the major production platform to almost double its defence business these backers pulled out and production capacity. the provincial government of Quebec, which One of the things that gave ZM Industries had been putting money into the yard to keep an edge over its competitors – and there were it ticking over, was again left with the problem several heavyweight international groups of what to do with it. involved in the process – was its singleThere followed a period of uncertainty, minded commitment to the acquisition, culminating in the purchase of Chantier Davie Vicefield thinks. “We took a big risk by Canada Inc by ZM Industries, an O&G service dedicating a significant amount of resource group. The ZM team led by Alex Vicefield, a to the project, commissioning environmental,

$170

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Be Oil & Gas | 117

legal, operational and management studies and getting vendors in at an early stage to see where improvements could be made. I think that stood us in good stead during the bidding process.” One of ZM’s core competencies, he adds, is its project management experience.

Just before the purchase of the Davie yard the company had completed the $100 million conversion of the oilfield installation ship Sampson to a pipe-laying vessel. By giving the job to the Viktor Lenac yard in Croatia, itself just out of bankruptcy, he says, the job was done to international standards of quality, at the lowest possible cost: the high risk was offset by putting together a team of experts from within the group and running the project on best yard management practice.

With unequalled skills and all the scale necessary, Davie was nevertheless stuck with some outdated systems and practices.

The biggest change has been a radical change in the manner of working there, says Vicefield. “Previously they were doing ‘build by discipline’, which meant that teams of electricians, welders, pipe-fitters and so on would be working simultaneously across the whole ship. During the due diligence we noted that was causing a lot of reworking.

We changed that to a ‘work zone’ and ‘work package’ approach. For each work package we separate the ship into zones and have a zone manager responsible for each. That allows us

to keep real time control of the build and it is a more accurate way of measuring progress than simply counting the man-hours spent.

This way we can record the work packages as they are completed: it is much more accurate.”

Another major departure was to install an RFID system throughout the yard, working in parallel with the shipyard management system that covers all functions from procurement to workflow management, financial controls, health and safety and HR. Workers had been used to using paper clock-in tickets: now they

“When the opportunity came up to buy the shipyard we jumped at it” 118 | Be Oil & Gas

Chantier Davie

The senior management team

have RFID swipe cards, and The contracts were worth the completion of every work something in the region of package is logged in real time. $170 million each - a major In addition to its knowledge headache for Cecon that first of shipyard management one brought Alex Vicefield and ZM into the picture: “They were of ZM’s key strengths was the financially heavily reliant on ability to unpick the complex Davie’s weekly steel financial involvement of the those ships being delivered,” construction capacity he says. The financing that several interested parties.

Davie is of strategic important had been arranged with major to the provincial government international bondholders and the federal government but also to the had to be restructured, and Vicefield was owner of the three vessels that were already appointed to the Cecon board to represent under construction in the yard. The Norwegian these bondholders’ interest. “When the offshore and subsea installation contractor opportunity came up to buy the shipyard we Cecon had contracted three specialised vessels jumped at it because we knew that it was a for pipe-laying, installation ROV and seismic unique facility in terms of the O&G business, work in 2007 but in 2010 work was suspended. let alone its other potential.”

300

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With more than 750 lawyers and other professionals in six Canadian cities, Borden Ladner Gervais LLP (BLG) is a pre-eminent full-service, national law firm focusing on business law and commercial litigation solutions for our clients.

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vincent@bus-ex.com 120 | Be Oil & Gas

Naturally the first priority was to restart the work in progress on the three ships awaiting completion. The sale of Davie to ZM Industries in December followed by the completion of a $280 million financing agreement with York Capital Management on 20 February this year came as a huge relief to the shipowner. The first vessel, already 80 percent complete, will now be delivered by November of this year.

The other two will follow in 2014.

With the business secure, other pending projects could go ahead. As we said, Davie has over the years been a strategic asset to the Quebec government. On May 16 its ferry operating agency La Société des traversiers du Québec (STQ) was able at last to confirm its order for two dual-fuel LNG ferries to operate on the St Lawrence River. Each 92 metres long,

Chantier Davie

A vessel under construction

these vessels will have over 625 lane metres across two decks, allowing the transport of over 115 vehicles, 200 passengers and ten heavy goods vehicles. The dual-fuel LNG engines, an environmentally friendly choice, are a perfect fit with Davie’s specialisation in advanced propulsion and vessel manoeuvring systems says Vicefield. “We come from the O&G sector where you build vessels with unique designs rather than churning out

commoditised vessels. This allows us to play on our core skills in specialised propulsion systems and unique designs.”

Alan Bowen, the CEO of Davie is a global authority on dynamic positioning (DP) systems, he adds. The vessels being built for Cecon are to be equipped with DP3 dynamic positioning systems, the highest grade with least two independent computer systems and a separate backup system. It’s one of the reasons why ZM

“We come from the O&G sector which allows us to play on our core skills in specialised propulsion systems and unique designs” Be Oil & Gas | 121

was undoubtedly a better owner for this yard than any of the large Asian shipbuilders that had expressed an interest. Such companies are versed in the production of commoditised tankers and container ships whereas ZM has brought in the know how associated with the specialised, highly customised vessels needed increasingly by the hydrocarbon sector, as well as defence and even fishery customers.

Among the residual equipment at the yard is the commencement of a project to build two

accommodation vessels for 400 personnel – also with DP as an important part of the spec.

That project was stalled when the original client went bankrupt, but Davie is now planning to build these and either operate them on its own account or lease them out.

“The market for vessels of this kind is very strong at present,” he says.

Losing out on NSPS was undoubtedly a kick in the teeth for Davie, but the situation is different now. The yard that was chosen is much smaller

“We have never been to a shipyard where we have seen such high quality workmanship in welding and the other key shipbuilding skills”

Working below decks

122 | Be Oil & Gas

Chantier Davie

The fabrication workshop

capacity than Davie, with a steel construction capacity of around 70 tonnes a week against Davie’s 300. Nevertheless there is still a lot of defence work to be contracted out, and in any case NSPS would have tied up the shipyard for many years to come, which may not have been the ideal situation for a company that could still mop up much of the requirement for auxiliary naval vessels, and in the immediate future the coastguard fleet and O&G exploration vessels. As the only Canadian shipyard with the capacity to take on these requirements it has a strong competitive advantage: if anyone wants to operate in Canadian waters for over a year the vessel has to be registered under a Canadian flag, meaning being built in Canada – or pay an import tax of 25 percent!”

Alex Vicefield is clearly enthusiastic about

the future for Davie. Under the Plan Nord Quebec is investing $80 billion in developing mining, fishing and energy industry in the north of the Province. “We are working with the government of Quebec to meet some of the needs of that infrastructure development,” he says. “And the quality of the workmanship here is nothing short of unique. We have never been to a shipyard where we have seen such high quality workmanship in welding and the other key shipbuilding skills. This is the best deal we have ever done, and I’d say our problems now are all high quality ones!”

For more information about Chantier Davie visit: www.davie.ca

Be Oil & Gas | 123

A national treasure Qatargas is a shining example of excellence within the energy sector

written by: Will Daynes research by: Abi Abagun

124 | Be Oil & Gas

Qatargas

Be Oil & Gas | 125

Q

atar possesses what is the occurring some 80 kilometres northeast third-largest reserve of all of Qatar’s mainland. For its Qatargas 1 known natural gas on the project the company has drilled a total of planet, behind only Russia 22 production wells which now supply and Iran. According to 1,600 million standard cubic feet of dry figures taken in January 2011 reserves in natural gas per day from the field’s reservoir the state were measured at approximately to existing onshore trains.

896 trillion cubic feet. This means that Meanwhile at Qatargas 2 the company has it contains as much as 14 percent of the drilled thirty wells, from which 2.9 billion world’s known natural gas. standard cubic feet of wet natural gas per Established in 1984, and headquartered day is transferred to Trains 4 and 5 onshore. in Doha, Qatargas is recognised today as Furthermore, Qatargas 3 and Qatargas 4 being the largest LNG producing company in supply 1.4 billion standard cubic feet of wet the world, with an annual LNG production natural gas per day between them, each capacity of 42 million tonnes to onshore Trains 6 and 7 respectively. In total 33 wells per annum (MTA).

This immense production are shared between these capacity is delivered to two particular ventures. customers around the world At the very heart from the company’s worldof Qatargas’ offshore class facilities and assets operations is its North Field Bravo offshore complex.

- Qatargas 1, Qatargas 2, Tonnes per annum, Commissioned in 1996 the Qatargas 3 and Qatargas Qatargas’ annual LNG complex’s main facilities 4. From these assets the production capacity company carries its output include two production on seven LNG trains, four platforms, three wellhead of which are officially the largest in the platforms and one remote platform station world, each boasting a production capacity around five kilometres away. It is from this of 7.8 MTA. complex that three of Qatargas 2’s installed Since the establishment of Qatargas 1, platforms are remotely operation, while the the company has completed a successful three platforms shared between Qatargas expansion programme that has included the 3 and Qatargas 4 are operated from the development of the Qatargas 2; Qatargas 3 company’s onshore control room. and Qatargas 4 projects, its Laffan Refinery, Qatargas’ onshore operations on the a dedicated fleet of ships, a regasification other hand occupy a site within the Ras terminal, and the establishment of liaison Laffan industrial city on a plot of land 3.9 offices in Japan and China. square kilometres in area. The original plant Qatargas’ offshore operations can be found consisted of only three trains to process the

42

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126 | Be Oil & Gas

Qatargas

PCS CABLES LLC is the regional branch office of PCS Italiana Srl, mother Company headquartered in Italy, Torino, and established since 1991 to provide turnkey solutions in the O&G field and sub-sea connections for power utilities.

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Qatargas psc cables

PCS facilities in Qatar include a workshop in Wakra Rd. and a branch office in the West Bay area of Doha.

PCS “Maintenance and Emergency Repair” team can promptly respond to an emergency cable repair, reaching the critical area in just a few days and providing a full spectrum of solutions to limit the possible damage and resume activity as quickly as possible.

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Qatargas deliveries

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natural gas from offshore. The capacity of these first three trains was a combined ten MTA of LNG. It wasn’t until that 2009 the Qatargas’ Trains 4 and 5, each with a capacity of 7.8 MTA started operating, bringing the combined production capacity of Qatargas to 26 MTA and ushering in a new era of ‘megatrains’ as they have come to be known. This was followed by the arrival of Train 6 in late 2010 and finally Train 7 in early 2011.

It is Qatargas’ belief that its commitment to excellence is what has enabled it to become pioneers in the global LNG industry and helped it to create steady

“From its assets the company carries its output on seven LNG trains, four of which are officially the largest in the world” Be Oil & Gas | 129

growth, advance operational excellence and establish the highest levels of safety and environmental performance.

While acknowledging the strides it has made, one thing that Qatargas places at the very heart of its priorities is its corporate citizenship. Indeed the company strongly believes that as a global leader in the global energy industry, it does not operate in isolation. On the contrary, it believes that Qatargas is intrinsically linked with the

communities and environments in which it operates, wherever they may be around the world.

Keenly aware that this link brings it opportunities as well as responsibilities, Qatargas is committed to operating in ways that reflect its core values, where it looks to create partnerships with the community based on trust, ingenuity, innovation and collaboration. That is why as a global leader in the energy sector it has chosen to

“It is Qatargas’ belief that its commitment to excellence is what has enabled it to become pioneers in the global LNG industry�

LNG production facilities at night

130 | Be Oil & Gas

Qatargas

Workers at the facility

align social investments with its business objectives, whilst at the same time working with dedication to create and maintain partnerships that promote the long-term economic, environmental, and social value of the communities in which we operate.

To this end the company boasts a comprehensive Corporate Social Responsibility (CSR) programme focused on long-term, sustainable social development. In addition to this programme Qatargas is keen to display the fact that it strives to adhere to and maintain the highest standards of energy use, responsible energy management and energy conservation, while also upholding a strong commitment to care and the protection of the environment.

As the company looks to build further still on its accomplishments it has set out a

visit for itself whereby it intends to become recognised across the globe as the world’s premier LNG company, one that is known for people, innovation, operating excellence, environmental responsibility and corporate citizenship, by 2015.

On top of this the company will endeavour to set an industry standard for safety performance, customer satisfaction, efficient and reliable operations and financial performance, and through its high calibre and diverse workforce it will continue to embrace the Qatar National Vision 2030 to achieving successful and sustainable development.

For more information about Qatargas visit: www.qatargas.com

Be Oil & Gas | 131

Al

Training the for future Chairman, Dr Sarmed Nima, discusses how Al Delma for General Contracting & Training Services is best placed to create a skilled local workforce in Iraq

written by: Will Daynes research by: James Boyle

132 | Be Oil & Gas

l Delma for General Contracting & Training Services

Be Oil & Gas | 133

Training with scaffolding structures for use to support people and materials

Al Delma

A

ccording to numerous geological surveys and available seismic data, the country of Iraq possesses what might well be one of the largest collections of oil reserves on the planet, estimated to total over 350 billion barrels. However decades of sanctions, two Gulf Wars and the subsequent years of civil unrest left its oil infrastructure in dire need of modernisation and investment.

Despite a growing international effort to transform Iraq’s oil industry for the better, there are still considerable skills gaps that need filling before the country can truly profit from what its land has to offer.

A 100 percent Iraqi owned company, established in 2006, Al Delma for General Contracting & Training Services aims to contribute to the re-building of Iraq into a stronger player on the international stage. Boasting a national footprint, Al Delma prides itself on its consistent level of service and ability to offer qualified personnel, plans and its accurate implementation of projects.

“In the aftermath of the second Gulf War in 2003,” explains chairman, Dr Sarmed Nima, “companies slowly began to return to Iraq. It was at this time that we took it upon ourselves to establish a business that would specialise in providing skills and training.”

Having worked for Iraq’s Ministry of Oil until 1999, and extensively within the private sector in the years after, Nima believes his true calling in life has always been in the field of petroleum engineering. It is his knowledge of, and experience within,

Be Oil & Gas | 135

the country’s oil sector that helped him to recognise the market’s need for professional training services.

“We began by providing English learning training,” Nima continues, “and have since advanced into providing core skills training, for example professional administration and managerial skills, and financial training.

Now we are also beginning to branch out into providing specialist technical training from our facility in Basra.”

A prime example of this training would be in the field of welding, a hugely important service required by the vast majority, if not all, of the companies working in Iraq.

“There is a distinct lack of professional services available in certain areas of Iraq’s oil industry,” Nima says, “and welding is one of them. What we have introduced is a stepby-step training programme, complete with ready-to-use simulators, that teaches people how to weld and do so professionally.”

This approach has since been extended to other disciplines such as scaffolding, working with chemicals, explosives and hazardous materials, and working in confined spaces. Courses that Al Delma currently has in development include those aimed at petroleum engineering, such as the production of reservoirs and

Awareness training in confined spaces is e

drilling, and health and safety.

“Other areas of business that we are looking to venture into,” Nima states, “are construction and procurement. Procurement activities in particular in Iraq tend not to be carried out to the standards that international companies expect and this is something we want to remedy. I personally have been responsible for executing more than 160 different procurement contracts during

“Al Delma aims to contribute to the re-building of Iraq into a stronger player on the international stage” 136 | Be Oil & Gas

Al Delma

essential for a successful oil & gas HSE

Al Delma has state of the art training facilities

my career and I now want perception of our company,” to transfer my knowledge Nima says, “also comes and understanding on to with the preconception others through our training that for whatever reason programmes. In a move our standards are lower that we hope will be take than they should be. This couldn’t be further from the these plans a step further, Iraq’s estimated truth. In fact, performance I have recently been in oil reserves wise, we excel where many Canada working to form others fail.” partnerships with those companies that are keen to Common issues that plight establish a presence within Iraq with the those failing companies include acquiring aim being to introduce their products and visas for Iraqis and handling the complex services into the country.” logistical challenges that the environment One of the challenges that Al Delma creates. Equally crucial to success is simply has to continually work to overcome is being able to have a firm understanding of its perception by some as being a little the culture of Iraq and how this impacts more than a local Iraqi business. “This upon the type of workers the country

350

Billion

Be Oil & Gas | 137

Knowledge and simulation is key to qualify as a professional welder

Technicians train

“Al Delma believes that all international companies should be committed to upgrading the standards of their Iraqi personnel” breeds. “This is where being a locally based company really benefits us,” Nima enthuses. “By having a clear understanding of the environment in which we operate we are best placed to stand shoulder-toshoulder with international companies as they attempt to establish themselves in this part of the world.”

It is Nima’s opinion that the company has

138 | Be Oil & Gas

developed hugely in recent years, becoming much more organised while maintaining its commitment to improving its capabilities further. By doing so, Al Delma gives itself a better edge over its competition when it comes to attracting the interest of international partners.

Having this edge appears all the more important when you take a closer look at

Al Delma

n in real maintenance workshops

what the immediate future for Iraq has in store. “In all our discussions with the likes of BP, Shell, Lukoil and other major international players based in the country,” Nima says, “what we have found is that they all agree that training is one of their most pressing concerns and requirements. What you must remember is that since 1980, for all intents and purposes, until very recently Iraq has remained disconnected from the world. This has created an issue where most of the local population are not educated or skilled enough to make this happen in this industry.”

What Al Delma believes is that all the aforementioned companies have a commitment to upgrading the standards of

On the job training builds confidence

their Iraqi personnel and they want them to know that the company is on hand to deliver the core skills they need. “It is my opinion,” Nima concludes, “that if Iraq’s oil industry is to reach its proposed target of producing ten million barrels of oil per day, then it will need a trained workforce of at least 70,000 Iraqis. This gives us great confidence that the market for training in Iraq will increase as the industry grows, and as this occurs we will do what we need to do in order to grow as well.”

For more information about Al Delma visit: www.aldelma.com

Be Oil & Gas | 139

140 | Be Oil & Gas

Les Gaz Industriels Limited (LGI)

The desire to diversify Managing Director, Jérôme Commins discusses LGI’s diversification over the years and its plan to expand into Africa’s emerging markets

written by: Will Daynes research by: Vince Kielty

Be Oil & Gas | 141

L

es Gaz Industriels Limited (LGI) was originally incorporated as a private company in 1952, with 100 percent Mauritian equity and the core aim of producing oxygen and acetylene for metal cutting and welding purposes. Eleven years later a majority stake in the business was acquired by leading South African gas company African Oxygen Ltd (Afrox).

This significant development helped shape the future of LGI, transforming it into a business that has diversified hugely throughout the years into a wide range of products, specifically the manufacture, sales and delivery of medical and industrial gases in bulk and in cylinders, the manufacture, sales and delivery of welding electrodes, installation of gas reticulation, project management, maintenance contracts as well as water treatment, with a growing market share in the Mauritian market and abroad.

It was on 5 April 2008 that Jérôme Commins was employed by LGI, taking on the role of Finance and Administrative Manager. In December 2009 he took on the position of acting Managing Director, before taking full lead of the business in February 2010.

“In the time since,” Jérôme states, “we have undergone massive developments as a business and today find ourselves in the midst of a huge investment programme where we are putting significant capital into new technologies for the production of liquid oxygen, liquid nitrogen, liquid carbon dioxide, liquid argon and all types of gases that we produce locally,”

142 | Be Oil & Gas

Les Gaz Industriels Limited

Be Oil & Gas | 143

1952 The year that LGI was incorporated as a private company

One of Jérôme’s most personal, and challenging, undertakings since he took on the role of Managing Director was to convince the board of LGI to invest massively in the acquisition of a new state-of-theart production plant at the company’s site in Mauritius. Having put his case forward successfully the company is now looking forward to taking delivery of the plant no later than September of this year.

“This new plant will open up a whole new world of possibility for us,” Jérôme enthuses. “While our existing facilities have served us well it has been obvious for some time that we needed to modernise, upgrade our capabilities and increase our stock and storage capacities in order to grow not just on a local level, but also in terms of regional and international expansion, while remaining competitive.”

“One of LGI’s proudest achievements” Jérôme states “is the fact that we have among our Partners, the largest fleet of IMO Type 7 ISO Tankers in the region.”

Jérôme is also confident and more than happy that the tanks the company supplies are well-maintained, marine certified and regularly recertified in accordance to class requirements, making LGI a preferred lessor

144 | Be Oil & Gas

Les Gaz Industriels Limited

If we placed all our industrial gas cylinders in a line, they would cover the surface, and even more, of a football ground

to its customers. One most important aspect that Jérôme highlights is that the tanks can be refilled on LGI’s site in Mauritius and re-forwarded throughout the world.

Having been established in Mauritius for well over 60 years, LGI finds itself in as good a position as anybody to offer its support to international and multi-national companies

looking to set up operations in the Indian Ocean or on the African continent. This is particularly true when it comes to the company’s welding operations, for which it is perhaps best known for its production of the well-known Vitemax brand.

“One of the things I am working on at the moment,” Jérôme explains, “is

“Today we find ourselves in the midst of a huge investment programme where we are putting significant capital into new technologies” Be Oil & Gas | 145

“Jérôme knows that despite LGI’s success to date, the company must continue to improve, and this all starts with the company’s most valued asset, its people”

There are no higher priorities than the health and safety of our employees, customers, suppliers and the community, and the protection of the environment

146 | Be Oil & Gas

Les Gaz Industriels Limited attracting investors from the welding sector to come and make things happen in Mauritius by importing the components and equipment needed to produce locally, before expor ting t he finished items back into core regional and African markets. In many ways I would like to see Mauritius become something of a hub for this sort of activity and we are already in discussion w it h severa l I ndia n a nd S out h A f r ic a n companies that share our long-term vision.”

While Mauritius itself is currently experiencing strong organic growth, the company is well aware that Whenever anyone buys anything from LGI we always put 100 percent of enthusiasm behind it further opportunities await it in a host of surrounding markets, especially those in Africa. “Our and abroad in the very near future. strategy for expansion,” Jérôme says, “is Although LGI is a company based in a to first target other small markets before small country it still harbours a strong desire moving deeper into Africa. This is a goal to be involved in large projects in some of that we believe we are in a strong position the busiest markets in the world. Today it finds itself in a good position to achieve to accomplish.”

In addition to its aforementioned aims, this thanks in part to its involvement with LGI is also looking to move into the supply the Ambatovy mining project, one of the of carbon dioxide to a number of large most ambitious industrial undertakings in multi-national players, including Coca-Cola the history of Madagascar. and PespiCo. Furthermore, the company “Our involvement in this project is has designs on expanding further into fascinating, not only because of the size and the healthcare and homecare markets, importance of the project but also in terms providing its services to clients both locally of the volumes of our products that we are

Be Oil & Gas | 147

Les Gaz Industriels Limited supplying to what is a logistically challenging island location,” Jérôme enthuses. “Indeed we have faced some minor obstacles in getting our products delivered on time and to specification to Madagascar, but we have succeeded in doing so and therefore have proven ourselves capable of taking on the most challenging of tasks and exceeding our customer’s requirements.”

Not one to rest on his laurels, Jérôme knows that despite LGI’s success to date, there is more to be achieved and in order to do so the company must continue to improve, and this all starts with the company’s most valued asset, its people.

“Our human capital is of vital importance to us and that is why we will continue to focus on their continuous development, providing them with the training needed.”

To this end the company has a number of exciting training programmes that will continue throughout the course of 2013.

Meanwhile it will continue to provide its employees with the opportunity to travel abroad to train in specific fields, with various Partners currently based in Italy, France, South Africa, Canada, Singapore and India.

“As our people grow,” Jérôme concludes, “so too will our business as we work to rapidly develop our overall offering, while at all times retaining the efficiency, competitive prices and product quality that LGI has become synonymous for.”

For more information about Les Gaz Industriels Limited (LGI) visit: www.gaz-industriels.com

Be Oil & Gas | 149

The clean and energy option

From its base in Johannesburg Egoli Gas is helping to supply an increasing number of domestic and commercia customers with a constant supply of natural gas

Written by: Will Daynes Research by: Paul Bradley

150 | Be Oil & Gas

Egoli Gas

d reliable n

al

Be Oil & Gas | 151

Egoli Gas

T

o many, natural gas is thought energy-efficient natural gas and is committed of as being the most important to providing an uninterrupted flow of natural energy source of the future. gas, ready to use when it’s needed, safely.

Egoli Gas acquires its natural gas from The abundance of natural gas coupled with its environmental integrated energy and chemical company soundness and multiple applications across Sasol. This gas is stored at a secure facility all sectors, means that it will continue to play in Langlaagte where it is carefully monitored an increasingly important role in meeting and controlled. The gas is reticulated to Egoli demand for energy in the years to come.

Gas’ Cottesloe premises where it’s stored in A hugely versatile energy source, natural low pressure holders before being reticulated gas has a number of applications in our daily to homes and business across the city. lives including domestic uses like home heating In order to service the needs of its 6,000 and cooling, cooking, fuel for transportation, plus domestic customers the company has steam heat production, electrical generation established locations across the majority manufacturing and industrial uses like of Johannesburg’s larger suburbs, however producing steel, glass, forest its pipeline infrastructure products, clothing, cement, extends much further afield, fertilizer and petrochemicals, a fact that is crucial to and creating polyethylene servicing its commercial and polymers, which is the most industrial clients.

Johannesburg actually widely used plastic.

Domestic customers To date the natural gas holds the distinction of served by Egoli Gas industry has helped generate being the only South African city to possess piped gas billions of dollars in revenue, created millions of jobs and as the cleanest infrastructure. Originally managed by the burning fossil fuel, has the potential to reduce Johannesburg Council’s Department of Water the harmful emissions generated by oil and and Gas which, from 1928, operated from coal. Abundant supplies of this domestic Cottesloe, the city’s gas infrastructure relied resource will provide a secure and stable on highly pollutant, hydrogen-rich, coal energy future while reducing greenhouse gas based gas for a number of decades. It wasn’t emissions for generations to come. until during 2004 and 2005 that the entire Based in Johannesburg, Egoli Gas is a pipeline network, as well as approximately natural gas reticulator, servicing more than 35,000 individual gas fired pieces of 8,500 domestic, central water hearing, equipment of consumers, was successfully commercial and industrial businesses in converted from hydrogen-rich coal based the metropolitan area of South Africa’s gas to methane rich, natural gas due to the most populated city. The company offers change specification of gas by the supplier. environmentally-friendly, safe, reliable and As such, Egoli Gas’ footprint now extends

6,000+

Be Oil & Gas | 153

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Egoli Gas from Midrand in the north Hatfield VW Braamfontein to Orange Farm in the south At Hatfield VW Braamfontein, there are no middlemen. Your and from Roodeport in the service consultant is also your auto technician. Having west to Bruma in the east. recently achieved the highest customer satisfaction index There are a host of in the country, we at Hatfield VW Braamfontein continue to benefits when it comes to strive for service excellence. using natural gas as an With supreme customer service being top of mind and a partnership that has thrived for over six years, it is no energy source, benefits that wonder that Hatfield VW Braamfontein and Egoli Gas have are clearly appealing to both jointly been associated as the leaders in customer service domestic and commercial in all aspects of their respective businesses. users as Egoli Gas’ customer The success of this partnership is based on an open, honest base continues to grow. and frank relationship and having an understanding of Arguable at the top of each other’s business and its needs. Together, Hatfield VW the list of plus points for Braamfontein and Egoli Gas continue to set the benchmark in supreme customer service. domestic users are the cost www.hatfieldvw.co.za savings associated with its use. Natural gas is widely recognised as being more efficient and effective than many other energy sources, and it has the ability to reduce one’s monthly power costs by as much as 50 percent.

As has been well documented numerous times in the past, natural gas is also a much more environmentally friendly alternative than many other sources of energy. Releasing 45 percent less carbon dioxide into the air than other forms of energy, natural gas is the cleanest burning fossil fuel. It is also seen as a much safer form of fuel, seeing as it is colourless, soot-less and sulphur-free, and Pressure meter on natural gas pipeline

“Releasing 45 percent less carbon dioxide into the air than other forms of energy, natural gas is the cleanest burning fossil fuel” Be Oil & Gas | 155

St John’s College gas installation

Anchor R

“Egoli Gas has made national headlines by signing a number of on-going multimillion-Rand contracts” being lighter than air it naturally disperses upward when leaked.

In the last five years Egoli Gas has made national headlines by signing a number of on-going multimillion-Rand contracts with various businesses wanting to implement alternative energy solutions. As part of some

156 | Be Oil & Gas

of these contracts the company has since implemented solutions for the Charlotte Maxeke Johannesburg Academic Hospital, financial services provider Absa, cellular network provider MTN and, more recently, financial institution Standard Bank South Africa’s Rosebank business centre.

Egoli Gas

Rand - glass blown with Egoli Gas

Amid rising power costs and climate change concerns, Egoli Gas says it is committed to helping companies reduce their carbon dioxide emissions and electricity burden. It also aims to improve the promotion of natural gas as an alternative form of energy for the greater Johannesburg metropolitan area.

In South Africa, the natural gas industry competes with electricity, coal, heavy and light fuel oil, liquid petroleum gas, paraffin, as well as diesel. As a proponent of natural gas, Egoli Gas believes the benefits of its product far outweigh those of other types of energy sources, especially as it is one of the safest, cleanest and most efficient

The Houghton development

forms of energy. Moreover, natural gas requires low maintenance and can be used domestically and commercially, with industrial applications ranging from steam processes to power generation. “We believe in supporting the initiatives of the National Energy Regulator of South Africa and the City of Johannesburg in meeting the growing demand for energy in the area,� the company states.

For more information about Egoli Gas visit: www.egoligas.co.za

Be Oil & Gas | 157

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