European Oil & Gas Issue 11 2013

issue ELEVEN 2013

oil&gas european

europeanoilandgas.co.uk f r o m e x p l o r a t i o n t o e n d u s e r

Industry

perspective Increasing global demand is driving UK oil and gas industry growth

Full analysis Analytics are an effective way to maximise production Manage your environment PC power management software can reduce costs

this ISSUE: Whistleblowing in business

SOG_almaco_living_quarters_200x280mm.indd 1

6.5.2013 14.05

Editors Chairman Andrew Schofield Group Managing Director Mike Tulloch

Sales Director David Garner Corporate Advertising Sales David King dking@schofieldpublishing.co.uk Sales Finlay Johnson Head of Research Philip Monument Business Development Manager Mark Cawston Research Managers Natalie Martin Ben Richell Editorial Researchers Ed Hipperson Kieran Shukri Jeff Johnson ­Office Manager Tracy Chynoweth

© 2013 Schofield Publishing Limited all rights reserved 10 Cringleford Business Centre Intwood Road Cringleford Norwich NR4 6AU T: +44 (0) 1603 274130 F: +44 (0) 1603 274131 schofield-media.com please note: The opinions expressed by contributors and advertisers within this publication do not necessarily coincide with those of the editor and publisher. Every reasonable effort is made to ensure that the information published is accurate, but no legal responsibility for loss occasioned by the use of such information can be accepted by the publisher. All rights reserved. The contents of the magazine are strictly copyright, the property of Schofield Publishing, and may not be copied, stored in a retrieval system, or reproduced without the prior written permission of the publisher.

Say what you will

about the UK economy, while many industry sectors continue to struggle, the UK oil and gas industry is experiencing ongoing growth and optimism. The fact is that, as well as opportunities close to home, in particular decommissioning in the North Sea, emerging markets around the world are providing UK companies with a wealth of prospects.

“Recent research conducted for Bank of Scotland’s Oil & Gas Report found that 77 per cent of oil and gas executives are planning company growth in 2013 and 2014. The future outlook has never been so good and there is even more of an opportunity for expansion on a global scale.” This is what Stuart White of the Bank of Scotland explains in the first of our lead features in this issue.

From page four Stuart highlights the key areas of expected growth for the UK oil and gas industry, giving some great insight into future market developments. In particular, he is keen to illustrate the prospects of some of the more recently discovered regions, saying that “there is now little doubt, given the changing global economic situation and fresh oil discoveries, that the emerging markets of Asia, Africa and South America are set to play a crucial role in the future of this exciting industry.” Read more to see what the coming years could hold in store for your business.

editors Libbie Hammond & matt high

europeanoilandgas.co.uk

Art Editor Gérard Roadley-Battin Advertising Design Jenni Newman Production Manager Fleur Conway Production Administrator Vicky Howes

The future outlook has never been so good and there is even more of an opportunity for expansion on a global scale”

European oil & gas

Managing Editor Libbie Hammond libbie@schofieldpublishing.co.uk Editor Matt High mhigh@schofieldpublishing.co.uk Staff Writers Kirsty Birkett-Stubbs Jo Cooper Editorial Administrator Emma Harris

1

2

European oil & gas

europeanoilandgas.co.uk

Contents

Regulars Lead feature

Increasing global demand is driving UK oil and gas industry growth

8

News

A look at some of the recent developments in the oil and gas industry

10

IT

PC power management software can reduce a company’s costs

12

Lead feature

Companies need to be ready to respond to whistleblowing

16

Special feature - Analytics

Analytics are an effective way to maximise business production

Profiles

45

42 Cummins Middle East FZE 45 SeaMar 49 TRIYARDS 52 A.Hak Drillcon 54 Gemini Corrosion Services 57 Xcite Energy Resources 59 TITAN Containers

4

62 AFI

3

65 CAN Group 19

19 MMHE 22 ASCO

70 Sevan Marine 72 Frederikshavn Havn 74 Analytical Technology & Control (ATAC)

26 Thermtech

76 Blackburn Starling

28 Amarinth

79 Apply Leirvik

30 Romica Engineering 32 Megarme 34 ALZ GmbH 36 Port of Sohar 79

europeanoilandgas.co.uk

4

European oil & gas

65

Industry

perspective europeanoilandgas.co.uk

With growing global demand for energy, the UK oil and gas sector will continue to be buoyant, as Stuart White explains

European oil & gas

B

4

Below Stuart White, area director Aberdeen & North of Scotland, Bank of Scotland

ritain’s oil and gas sector is witnessing continued growth and optimism. Recent research conducted for Bank of Scotland’s Oil & Gas Report found that 77 per cent of oil and gas executives are planning company growth in 2013 and 2014.

The future outlook has never been so good and there is even more of an opportunity for expansion on a global scale.

International expansion intentions are marginally greater than they were when we questioned businesses in 2011. Two thirds (66 per cent) of executives told us they were intending to grow overseas within the next two years. Three quarters of those who had initial thoughts on overseas expansion a year ago have already converted that into action. It’s a positive sign and confirmation that Britain’s oil and gas firms are continuing to think and act on a global scale.

The industry’s spotlight is beginning to shine on emerging markets with more than half (56 per cent) of explorers and producers we questioned revealing an uplift of international interest. The Far East, South America and West Africa present exciting potential – particularly regions such as the South China Sea, bordered by China, Vietnam, Malaysia and Brunei and, to a lesser extent, Indonesia, Taiwan and the Philippines, where offshore production potential is still largely unknown, but where estimates have reached as high as 125 billion barrels of oil and 500 trillion cubic feet of natural gas.

Emerging markets are now offering potential returns greater than those in the developed world. The latest statistics place Russia at the top of the league table when it comes to potential deepwater market growth over the coming five years, and it is closely followed by China and India.

Africa has been in the industry’s line of sight for some time now. Nineteen countries in the continent are now significant oil and gas producers. Nigeria has led the pack, with the latest figures suggesting the continent has eight per cent of proven world oil reserves but only 3.9 per cent of

world consumption. In 2010 African reserves were thought to be between 200 and 210 billion barrels of oil equivalent.

Forecasts suggest growth in the region will continue to rise rapidly, albeit at a slightly slower pace than in recent times. However, the risks associated with the region cannot be ignored. As a frontier country, Africa presents extreme modern day challenges to the industry. Despite this, continued fresh discoveries are now being made across the entire continent - as far north as Senegal and as far south as Namibia. Offshore gas discoveries have been made in Tanzania and Mozambique, proving enticing enough for six per cent of all companies to name it as a growth region for them, while oil finds have been made in the East African rift valley around Uganda and South Sudan. There is no doubt

European oil & gas

europeanoilandgas.co.uk

Lead one

5

that in the years to come, Africa will become a dominant player in oil and gas.

Overseas exploration carries its risks. Resource nationalisation is one such threat, as was witnessed in Argentina when national energy company YPF was placed back into the hands of the government, at the expense of private Spanish owner Repsol. However, this should not be viewed as an obstacle to entering new regions and markets.

With economic power shifting towards new world powers such as Brazil, Russia, India and China, the secret for British businesses is to bridge cultural divides and manage risk by working with businesses already on the ground in these fast moving markets.

According to our research, the UK’s oil and gas firms are

increasingly interested in looking abroad, but many focus on the traditional markets of the Middle East and North America. These regions have their benefits. In particular, long established links and the ease of selling in and building relationships make them lower risk opportunities. However, there is now little doubt, given the changing global economic situation and fresh oil and gas discoveries, that the emerging markets of Asia, Africa and South America are set to play a crucial role in the future of this exciting industry. Now is the time for the UK’s oil and gas industry to embrace them and witness even greater growth and success.

More than 5000 jobs are likely to be created by the growth and international expansion planned by the 100 companies we surveyed for our oil and gas report. The majority of

European oil & gas

europeanoilandgas.co.uk

However, there is now little doubt, given the changing global economic situation and fresh oil and gas discoveries, that the emerging markets of Asia, Africa and South America are set to play a crucial role in the future of this exciting industry

6

employment is mainly being created by equipment suppliers and servicing companies (4810 jobs), rather than by explorers and producers (543 jobs). Adjusting these numbers to allow for the different numbers of companies in each sector, it means that the equipment and servicing sector is likely to be five times more jobs creative than exploration and production.

The development of new oil and gas fields normally grabs the headlines for sheer size of investment and job creation.

For example, Statoil announced in December 2012 that it intended to invest $7 billion (£5.4 bn) in developing the Mariner field, which would create 200 jobs onshore in Aberdeen and 500 offshore. But our research found that some equipment and service suppliers may create even bigger numbers of jobs, albeit in a series of growth steps rather than the one big project. One firm declared its intention to create 750 jobs in the next year, and another an expectation of filling an extra 1200 posts.

In addition to international expansion plans, over 30 per cent of companies in the sector are hoping to diversify

beyond their current business model. Just under a fifth (17 per cent) of all companies (nine per cent of exploration and production firms; 21 per cent of equipment and service suppliers) said they are interested in diversifying into unconventional oil and gas opportunities, including fracking.

Global industry interest in extracting oil and gas from ‘tight’ shale deposits has soared as new techniques have made the tapping of these unextractable resources possible.

In December 2012, Ed Davey, energy and climate change secretary, announced that the UK government was setting up an Office of Unconventional Gas and Oil, widely seen as confirmation that the government is keen to encourage the development of this industry in the UK. This survey suggests that Britain’s oil and gas industry was well aware of the potential gains to the national economy and, more especially, to them from its development even before a recent report sought to quantify them as significant.1 The excitement about unconventional oil and gas opportunities is more than twice as great as interest in decommissioning and renewables. Though the market for

1 PricewaterhouseCoopersUK. February 2013. Shale Oil: the next energy

decommissioning work was £490 million in 2012, it is not expected to reach more than £1 billion until after 2017.2 The Bank of Scotland’s research found that a higher proportion of equipment and service suppliers (38 per cent) plan to diversify than exploration and production companies (16 per cent). This may be because explorers and producers consider there to be more than enough profitable work for them in doing what they know best. Supply chain firms, on the other hand, may see their skills as more transferable to other types of activity in the energy business.

This sectoral divide is partly why there is a geographical divide in the focus on diversification. Some 21 per cent of Scottish-based companies, which are predominantly in equipment and service supplies, are interested in unconventional oil and gas, compared to 16 per cent of firms in England. Scottish companies are also more interested in decommissioning and renewables work.

A third of companies identified skills shortages, now a persistent issue, as the biggest problem they expect to face in the next 24 months. This is a bigger issue for equipment

revolution. This report suggested that development of shale oil could boost the UK economy by up to £50 billion by 2035 and that North Sea companies were well placed to profit from it. Available at: ukmediacentre. pwc.com/imagelibrary/downloadMedia.ashx?MediaDetailsID=2249 2 Oil and Gas UK. 2012 Economic Report. Available at: oilandgasuk.

co.uk/2012economic_report.cfm

bank of scotland Stuart White joined Bank of Scotland in 1986. He qualified as a CA in 2001, and joined the Corporate business in Scotland. Three years in acquisition finance was follow by senior roles in business development and relationship management, latterly in the West Midlands. Stuart returned to Scotland in late 2011 and leads the Bank of Scotland Commercial Banking Mid Markets team in the North of Scotland, with a responsibility for a portfolio of around 150 corporate clients.

For further information please visit: bankofscotland.co.uk bankofscotlandbusiness.co.uk

European oil & gas

and services suppliers (identified by 37 per cent) than for explorers and producers (25 per cent), probably because their workforces, once into production phase, tend to be more settled. Worryingly, given ageing North Sea infrastructure, 75 per cent of inspection, repair and maintenance firms named skills shortages as their biggest headache.

Exploration and production companies, in contrast, see access to finance as their main challenge (31 per cent) as field development requires heavy capital expenditure with long lead times before returns begin to flow. Oil and gas sector funds raised through the AIM has dropped from £2 billion in 2010 to £644.5 million in 2012, which may, in part, explain the sentiment expressed here.

Finance is less of an issue for equipment and service firms (ten per cent). Taxation is felt, not surprisingly, to be more of an issue by explorers and producers (six per cent) than supply chain companies (one per cent) but, from other evidence in this survey (see Chart 5.4), this should not be taken as a sign that the high offshore tax regime is no longer an irritation. Among other challenges, the invention and adoption of new technology, and identifying the right growth points in the market for new contracts were mentioned.

The results of our survey are further encouragement for us to work even more closely with businesses in this sector to gain a greater understanding of their individual needs and overall sector strategies. It is vitally important we keep pace with what is predicted to be a period of not just expansion but diversification – with anticipated moves into new growth markets giving us the opportunity to provide expert support.

With growing global demand for energy, the oil and gas sector will continue to be buoyant for years to come and Bank of Scotland is committed to playing its part to ensure that the UK and Scotland continue to make their mark in this key industry.

europeanoilandgas.co.uk

Lead one

7

europeanoilandgas.co.uk

Above: Arnlea's Allan Merritt with the firm’s RNID scanners that are used in the oil and gas, petrochemical, and food and drink industries

Growing assets Asset integrity specialist Arnlea Systems Limited has announced it expects to increase turnover by 60

European oil & gas

per cent by the close of 2013 thanks to an expansion in international

8

Arnlea is the leading asset

trade. The firm, based at Inverurie, Aberdeenshire, is targeting a growth from £1.3 million during 2012 to more than £2 million by the end of the year. management operator in the North Sea and has supported companies operating in hazardous and harsh areas for more than 20 years to maximise operational efficiency and effectiveness. The company’s suite of mobile and frequency identification tracking technology, used by the oil and gas, petrochemical, and food and drink industries, enables users to manage and monitor their assets.

Executive chairman Allan Merritt said Arnlea’s anticipated growth included a particular focus in Southeast Asia. “The company is in a healthy position just now, demand for our services is high and we have put in a solid framework to harness our expansion. We will continue to grow domestically in the UK but the international side is where we expect to increase sales by 70 per cent to 80 per cent.”

Above: Proserv CEO David Lamont

Key acquisition Market leading energy production technology services company Proserv has strengthened its global position with the acquisition of pioneering subsea engineering firm Velocious.

The deal for the business, based in Perth, Australia, will see Proserv integrating more than 20 members of staff specialising in intervention, tooling, engineering innovation and project management into its business.

Established in 2006, Velocious has been involved in providing innovative solutions to some of the most demanding projects faced by oil and gas companies across the globe. The company specialises in the subsea domain with intervention on subsea production equipment being a particular area of strength, has a strong track record for oil and gas project management and has worked for a host of international companies.

The deal sees Proserv increase its talent pool to in excess of 1900 employees and reinforces the company’s position as a leader in drilling and subsea innovation.

David Lamont, Proserv’s chief executive officer, said: “Velocious is a widely respected business which fits well with Proserv’s ethos of ingenuity and innovation. As we have shown in the past, we are always looking to invest in companies that strengthen and diversify our suite of products and services. The Velocious team bring a variety of skills and a great depth of knowledge to Proserv.”

Revolutionary approach A revolutionary approach to tackling the critical need to attract thousands of new recruits into the oil and gas industry has been unveiled by sector skills body OPITO. In what could lead to the biggest shake-up of skills provision in the North Sea’s history, OPITO is responding to the urgent need for a less fragmented approach to the skills issue with a £1.2 million annual investment that will result in the creation of the first ever national oil and gas skills agenda.

The move will see six jobs created immediately, based within OPITO’s headquarters at Portlethen, Aberdeen, with further recruitment likely in the coming months.

“Despite significant investment largely from industry, but more recently from Government, and a raft of private and public initiatives, we are still not properly addressing the skills challenges in oil and gas. It is vital that more definitive action to deliver a sustainable supply of people into the industry is taken. As the body responsible for skills, it is up to OPITO to take control and lead the charge for a step-change,” said Larraine Boorman, managing director of OPITO in the UK. “A landmark shift has to happen if the industry is to break the cycle, which it has been struggling to overcome for decades.”

News

Above: Phil Hart

Above: Jeffrey Lewis

By appointment BMT Scientific Marine Services has announced an expansion of its

of operations and Jeffrey Lewis as vice president - client support operations.

Phil has over 17 years of experience in the offshore industry, including project management, technology development, designing and implementing new product lines and company revenue streams, building and directing multiple crossfunctional teams, and budgeting.

Phil previously was a project

europeanoilandgas.co.uk

Aberdeen-based Hydrasun has recently invested nearly £100,000 in installing a cutting-edge system in its warehouse to enhance productivity and aid customer service The company, a speciality provider of integrated fluid transfer, power and control solutions, has become one of the first companies within the oil and gas industry to introduce the eSmart Voice Control system in its main Aberdeen warehousing facilities.

The innovative voice-activated technology will increase picking efficiency by 20 per cent and will significantly contribute to environmental objectives by reducing the amount of paperwork needed to process customer orders.

Hydrasun stocks more than 30,000 items covering a range of fluid connectors, hoses & fittings and processes on average 6000 orders per month, comprising of 20,000 line items.

Bob Drummond, Hydrasun CEO, said: “The introduction of this system was entirely based on delivering increased value to our customers and demonstrates Hydrasun’s overall dedication to customer service. This system is a visible sign that we are committed to continuous improvement and advancement in our business.

“We have already seen benefits of the new system, which is intended to advance our speed of response as well as allow improved pick accuracy to reducing the possibility of human error.”

of Phil Hart as the new vice president

engineering director. Following

European oil & gas

Voice commands

operations team with the appointment

Global Marine, he was the Senior

9

manager and consultant at Cranfield University, and then moved on to Global Marine Systems Ltd where he worked as general manager, senior product development manager, and

On the move

VP, chief technology officer at Ocean

Axiom Process Management has been confirmed as the latest occupier at ABZ Business Park, Aberdeen. Axiom, which delivers solids control technology to the exploration and production industry, is investing in the purchase of 1 International View at ABZ, a 16,000sq.ft. warehouse and Above: Axiom’s new headquarters office facility with associated yard. at 1 International View, ABZ ABZ Development Ltd, the family firm behind the business park adjacent to Aberdeen International Airport, developed the premises at 1 International View as a speculative property for the open market, with construction having recently been completed.

Marshall Bailey, chairman of Axiom said: “Axiom’s investment will expand the company’s production capacity, provide space for extension of our research and development functions and add a purposebuilt training facility for customer and company personnel."

ABZ Business Park is zoned for 750,000 square feet of vital commercial, industrial and hotel development land for Aberdeen City and Shire. Overall investment in ABZ is expected in the region of £100 million for the construction phase alone – with the potential for up to 2000 jobs to be created when units onsite are fully-occupied.

The outline plan for ABZ phase two – on land south of Wellheads Drive directly opposite the main park – will include land zoned for class 4, 5 and 6 use focussed on workshop, warehouse and openstorage facilities.

operational efficiency of BMT

Power Technologies.

In his new BMT role, Phil will be responsible for ensuring the projects, providing consistency between projects. He will manage the operations group and will oversee project management, engineering, client support and technical services.

In addition, longstanding BMT employee Jeffrey Lewis has been promoted to vice president - client support operations. In his new position, he will lead a team to support the design and delivery of new maintenance and service products and customer-based application software. Jeffrey and his team will also support all three major business lines with equipment and systems testing activities and installation services.

Manage your

How oil and gas companies can use PC power management software to reduce their costs, by Ashley Leonard

European oil & gas

europeanoilandgas.co.uk

E

10

Below Ashley Leonard CEO of Verismic

nergy consumption in the UK and Europe is on the rise, as are energy costs. A March 2013 report by the UK’s Department of Energy and Climate Change suggested that whilst bills were coming down for home owners, businesses that are medium-sized users of energy currently face costs that are on average 21 per cent higher as a result of UK Government energy and climate change policies.

Costs for businesses were expected to rise further by 2020.

However, with simple changes, and with external support to manage their environment, oil and gas firms can reduce the energy they consume and save costs. Typically scalable to 100,000 seats and suitable for notebook, desktop, Windows and Mac PCs, PC power management technology can provide a demonstrable cost reduction at every level – IT, staff and the overall business – through reduced energy consumption. Depending on the environment, this saving is around £60 per PC per year or £60,000 per year for a 1000 computer organisation.

IT managers are interested too; a May 2013 survey of 127 UK IT managers showed the most popular cost saving measures, technologies and activities for IT managers were ‘reducing IT power and cooling costs’ (20 per cent) and the ‘introduction of PC management software’ (17 per cent).

Global oil and exploration company, Tullow Oil, recently implemented PC power management software across all of its 2800 PCs in use at multiple sites across 15 countries in Europe, South America, Africa and Asia. It can now create a baseline of energy consumption and then implement power policies to reduce its IT energy usage. The IT team can generate reports, detailing power usage of individual workstations worldwide, and enforce optimum energy efficiency across the organisation.

In practice, an IT department like Tullow Oil’s might use PC power management systems during ‘working’ hours of 8am to 6pm - PCs and monitors remain always-on, but monitors turn off after 20 minutes of inactivity and PCs go into standby mode after 30 minutes of inactivity. At 6pm every night, if there is no activity, PCs go into standby

and the monitors turn off. Employees working after hours can delay the software from powering down. IT typically performs software updates at 11pm so a maintenance window can be created to power on all assets for 30 minutes at that time. The savings data is then recorded and is accessible via a management console, where organisations can report on financial savings and environmental benefits.

More advanced PC power management systems can also personalise ‘the energy saving experience’ to individual users.

The system can learn user behaviour – start time, coffee time, lunch break, finish time, etc. – fine-tuning the powering down of energy consumption and throttling back of energy at specific times of day.

It is also possible for PC power management systems to be connected with building control systems, enabling the powering-on of specific PCs as individuals pass through security control. By the time a user arrives at their workstation, their PC is ready for use. This takes PC power management systems into a new realm – improving employee productivity.

Speaking about his use of PC power management software Andy Harper, device management analyst, Tullow Oil, explains: “PC power management software gives us a unique insight into power usage behaviour of our devices, whether located at our head office in the UK, on a remote oil rig in sub-Saharan Africa or a vessel in the Atlantic Ocean.”

He adds: “It is set to give us significant cost savings with a reduction in energy usage and its advanced functionality can detect if an employee is interacting with a PC or out at a meeting; whilst at the same time avoiding any shut down on workstations that are running modelling or monitoring software. We can manage our environment, whilst also supporting our Environmental Health and Safety [EHS] policy.”

Deployment The process of putting a PC power management programme into action has never been easier. With simple onsite evaluation software that is easily installed, and agents that deploy the same day, companies can

Reporting In the same survey referenced, 28 per cent of 127 IT managers suggested that they did not regard energy-based cost savings as a priority because [despite high interest] costsavings cannot be clearly identified. This is actually a misperception. PC power management software offers metrics to help IT determine just how effective their energy policy is by tracking the savings that are being made – even with a 100,000 seat deployment reporting is near real-time. PC users are also provided with feedback and stats promoting the benefits of the policies and its solutions – costs savings and environmental benefits by way of example.

It might be hard to believe, but PC power management comes at little cost. Full return on investment is achievable in just six to twelve months for on-premise software installations. PC energy management benefits the overall organisation – by implementing such systems, the IT team can take a lead on helping organisations reduce costs.

PC power management can be placed in a rare category of IT projects that not only save money, but help the environment, while providing a positive public image for the company. Some of the most successful business projects are those that focus on a company’s environmental endeavors, or willingness to make eco-friendly changes. There are so many ways a company can win by saving money and helping the environment, and it all starts with taking necessary, but small steps toward energy efficiency and green IT energy management.

Alternatives Some users may think it would be more efficient to just switch their machines to ‘off’ in the evening than to use power management software. The reality is that PC power management is just an afterthought for most users as they do not personally benefit from reducing their

workplace energy usage. As with many things that require repeated human interaction, continual reinforcement to maintain the effectiveness of this manual process becomes imperative. This is one example of why businesses invest in automated systems.

Although many organisations have tried in the past, creating home grown solutions to remedy the need for an energy management solution may be more trouble than it is worth. Writing computer scripts that list commands to turn off a computer without user interaction, or using a group policy (GPO) to control what users can and cannot do on a computer system will only get you so far.

Production environments have many complexities that selfscripting will need to overcome, making the highlighted methods less effective. Without flexibility and granularity, homegrown solutions soon wither and die due to lack of available resources or human skills. PC power management is a discipline of systems management and there are very few companies that do not have some kind of investment in these tools. To patch and deliver software these tools go above and beyond what the plain OS and GPO/login scripts provide, and PC power management is no different.

There is a common misconception with regards to screen savers and energy conservation because screen savers actually consume more energy than if they were not enabled at all.

Once used for screen burning, where static images burnt themselves into the screen, today they are purely used for entertainment purposes, and should not be confused with power management.

The future Sadly, energy costs will continue to rise. The requirement for reducing PC energy consumption will not go away.

The ‘cloud’ might reduce power consumption in the data centre as IT services are moved off-site, but endpoints will remain onsite and within the control and responsibility of the IT team. Even factoring in the rise of tablet PCs, the requirement for PC power management will not abate.

For most professional IT users, the tablet has become a second screen not a primary screen - the laptop is not being replaced, but is being augmented by a tablet. This means that businesses are consuming even more energy. The time is right for IT teams and leaders to begin more effective management of their environment.

Verismic Ashley Leonard is CEO of Verismic, which has developed the most advanced, non-disruptive computer energy management product on the market. Verismic Power Manager allows organisations around the world to reduce energy costs with a quick to deploy and easy to manage solution.

For further information please visit: verismic.com

European oil & gas

collect metrics and position policies just hours after PC power management software has been installed.

Some PC power management solutions even offer cloud capabilities so businesses do not have to worry about running and maintaining the software on their own server infrastructure – it can be hosted and maintained for them.

To begin, it is important to note that an organisation’s first move towards power management should be phased.

Most users would have not yet encountered their machines automatically going to sleep during the day, or turning completely off at night, it might take a little time for them to adjust to the new policies. That is why it is better to start with less strict power management policies initially and then fine-tune policies over time.

Users notice everything about their computers, especially if it has been altered in some way. This is why it becomes so important for the management team to help the IT department enforce these new changes.

europeanoilandgas.co.uk

IT

11

Companies need to be ready to encourage, and respond to employees speaking up,

by Dr David Lawler, Partner, Forensic Risk Alliance

European oil & gas

europeanoilandgas.co.uk

Blowing the

12

I

Below Dr David Lawler

n 2001, Sherron Watkins, a vice president at Enron Corporation, uncovered evidence that some of the company’s accounting practices were unethical. She approached the board to get the matter resolved, but they didn’t listen and Watkins was forced to go public. Her actions led to the collapse, not only of the company, but also of its auditors, and to convictions (some with lengthy jail terms) for many of Enron’s senior officers. Arguably, the episode led to changed global attitudes towards corporate dodgy-dealing, bribery, and the culture of ‘success at any cost’. In fact, whistleblowing had such ramifications globally that all three of TIME Magazine’s 'Persons of the Year' in 2002 were major corporate whistleblowers.

Whistleblowing is the blanket term for a situation where a member of staff (or other stakeholder) provides confidential information about suspected wrongdoing either to their employer (‘internal whistleblowing’) or to a regulator (‘external whistleblowing’). Although both of these situations are covered by the same term, they have very different results and consequences as far as companies are concerned.

Get your house in order Over a decade later, to maintain reputation and integrity (and to comply with legislation such as the Foreign Corrupt Practices Act and Sarbanes-Oxley), the majority of companies have mechanisms in place to avert unethical practices. But policies and procedures are not enough by themselves. A shared commitment to doing business ethically requires fostering an environment in which people are encouraged to speak up, and employees trust management to deal internally with problems that have been flagged.

An internal whistleblowing policy shows commitment to good governance, and is a guide for employees for raising concerns responsibly. Whistleblowing policies are now essential ‘adequate procedures’ to prevent and deter bribery under the Bribery Act, but they need to be more than mere ‘paper’ policies. Indeed, what distinguishes a good company from a poor one (or a great company from a good one) is not the extent to which it has problems, but its willingness to learn about those problems, understand them and quickly put them right. Companies which have not embraced this approach find that employees feel that they have no other

European oil & gas

europeanoilandgas.co.uk

Lead two

13

choice than to ‘go public’ with their concerns, and resort to blowing the whistle externally.

Motivation - morals or money?

As part of the regulatory reform legislation introduced in response to the fraud perpetrated by Bernie Madoff, the US Securities and Exchange Commission’s little-used Whistleblower Bounty Program was extended to cover people coming forward to the regulator with evidence of any type of securities fraud. Specifically, the new ‘Dodd–Frank Wall Street Reform and Consumer Protection Act 2010’ now means that individuals coming forward with information about frauds or bribery stand to receive between ten and 30 per cent of amounts over $1 million recovered by the SEC through subsequent enforcement actions. (Although the US Government actively encourages private-sector employees to betray their employers’ confidences and hand over internal corporate material, it has a somewhat different perspective when its own secrets are leaked, as the cases of Bradley Manning and Edward Snowden testify. Manning, a soldier,

and Snowden, an ex-US intelligence operative, both turned whistleblower, leaking classified information - in Manning’s case, military secrets, and in Snowden’s, details of US phone and internet surveillance to the media. Although apparently motivated by the public good, they will be lucky not to spend the rest of their lives in prison.)

Indeed, these ‘bounty’ payments may already have had an impact on whistleblowing around the world. In its first report on the Dodd-Frank scheme, the SEC reported more than 320 foreign tip-offs in the last financial year, with nearly one in four coming from the UK, 14 per cent from Canada and ten per cent from India. This might simply be representative of the large number of US companies operating abroad, and in these countries in particular, or it could be part of a more general trend in the UK that has seen the number of whistleblowing cases reported to the Financial Services Authority (FSA) up 276 per cent in four years. It could also point to the fact that none of these countries have similar pay-out schemes in place, and it’s also worth noting many of the other countries whose citizens have tipped off

europeanoilandgas.co.uk

European oil & gas

14

the SEC do not have any significant whistleblower protection enshrined in law - a fact which may also influence potential whistleblowers to deal directly with the US. Given the large fines in foreign bribery cases in recent years, there could be some big rewards for those prepared to tell all to the government. Most compliance officers agree, however, that external whistleblower incentives risk changing the dynamic of internal investigations. As well as destroying trust internally, these bounty programmes risk undermining internal compliance programmes, as employees who would once have approached the compliance team directly with their suspicions, may now decide instead to go straight to the regulators in the hope of a financial reward.

The SEC goes some way to encouraging internal reporting as a first measure by stating that a whistleblower is eligible for a reward if they report internally and the company informs the SEC about the violations. It also offers financial incentives for whistleblowers that support a company’s existing compliance and reporting systems and disincentives to those that interfere with internal compliance and reporting. However, whistleblowers aren’t directly required to report violations internally to qualify for an award, so many could be tempted to take the least painful option and report to the SEC straight away, even when there are processes in place to hear and act on their findings. We are aware of some oil and gas companies that, in an attempt to pre-empt this, actively reward internal whistleblowers with bonus payments.

An effective mechanism A recent EuroFinance survey suggests, on a global basis, that almost a third of organisations still have no formal process for their employees to report financial wrongdoing, or else their employees are unaware that any process exists.

The report also highlights that employees in organisations without a formal whistleblowing process reported witnessing much higher levels of undetected, serious financial wrongdoing (40 per cent) than those in organisations with a formal process in place (six per cent).

These surveys imply that there is a relationship between companies encouraging their employees to report their concerns and reduced levels of misconduct. This only works, though, if there is a formal policy in place which offers nearabsolute confidentiality. Otherwise, a culture of fear and ‘looking the other way’ will develop - with people afraid to speak out at the risk of intimidation and being ostracised by their peers.

For companies subject to the Sarbanes-Oxley Act, this anonymous reporting requirement must also be extended to third parties. Accordingly, companies often establish an anonymous telephone hotline or use an internet-based mechanism for anonymous communications and to encourage employees to express concerns, making it easier and more comfortable for employees to report to their employer rather than to a regulator.

Responding to whistleblowing Getting calls on the whistleblowing hotline is not a sign of failure as any effective programme will receive calls, but hopefully most will be comparatively trivial. Some will be simply vindictive, but to maintain integrity in the process all should be seen to be taken seriously, investigated, and resolved.

If an initial triage suggests that bribery might have taken place, it is important to act quickly. Continually ask yourself whether the Serious Fraud Office, or the Department of Justice - with the benefit of hindsight - is going to think what you did thorough yet proportionate?

66 Ensure that the questionable conduct has stopped. Put a hold on anything potentially dodgy. Suppliers won’t like it if payments to them are delayed pending an investigation, but the alternatives are far worse. Change suppliers to ensure continuity of supply if there is any doubt at all.

66 Instruct forensic accountants to review the accounting data haystacks for the needles that might highlight a presence - or absence - of illicit payments. Ensure communication passes through lawyers and thus becomes – as far as possible – confidential, and resist the urge to go straight to the company’s auditors, who may have missed the signs of problems for some time, and if so, will be keen to minimise

Lead two

European oil & gas

europeanoilandgas.co.uk

A recent EuroFinance survey suggests, on a global basis, that almost a third of organisations still have no formal process for their employees to report financial wrongdoing, or else their employees are unaware that any process exists

15 both the impact of any problems, and their culpability.

66 Preserve and gather potentially relevant evidence using electronic data experts with expertise in international data protection and privacy laws.

Conclusion External whistleblowing isn’t going to go away. Perhaps this is due to individual awareness of corporate compliance, a growing confidence amongst employees to ‘go public’ with their findings because of increasingly positive press coverage, the increasingly publicised financial incentives, or perhaps the freedom afforded to individuals to break whistleblowing stories through social media outlets.

But there remains a very clear message – companies’ formal procedures have a direct influence on both the risk of external whistleblowing, and on the levels of bribery and corruption. It is increasingly important that companies get the message across that they take employee concerns seriously, to encourage any would-be whistleblower to report directly to the company, and not to the government.

Finally, it’s worth remembering that whistleblowing is not easy. For most people, fear is a more common cause of corrupt behavior than greed. Most people want to avoid

conflict and speaking up can taint a career, or in extreme cases have even worse consequences, so many individuals just keep quiet. It takes courage to report wrongdoing. Even the terminology used can send an important message: so perhaps we should start by changing the name. ‘Speaking up’ has a far more positive connotation than ‘whistleblowing,’ and perhaps that’s what should really be encouraged in the future. t

Forensic Risk Alliance Dr David Lawler is an expert forensic accountant with over 20 years’ experience in anti-corruption investigations and compliance. He has quantified gain and disgorgement for several of the ‘Top-10’ oil and gas FCPA settlements, and has performed compliance audits and tightened the FCPA/anti-corruption systems and controls for several multinational energy and mining companies. David is the author of the book, ‘Frequently Asked Questions in Anti-Bribery and Corruption’, published by John Wiley & Sons. (amzn.to/HRElEb).

He can be contacted at dlawler@forensicrisk.com For further information please visit: forensicrisk.com Or contact +44 (0)20 7 831 9110 (London) or +1 (202) 627 6580 (Washington DC)

analysis

Alan Matthew, Aventa Systems, and Simon Ryan, Logi Analytics, discuss analytics as a cost effective way to maximise production

European oil & gas

europeanoilandgas.co.uk

Full

16

Below Alan Matthew, Aventa

Below Simon Ryan, Logi Analytics

T

he oil and gas industry in the UK is under mounting pressure to optimise existing assets by increasing process uptime, reducing lifting costs and minimising the impact on the environment, whilst maintaining or indeed, improving, safety. Some of the assets in the North Sea are nearly 40 years old and as time progresses they are becoming more difficult to maintain and increasingly costly to run and keep fully compliant.

Working to maximise production is firmly at the top of every asset manager’s agenda, and it is becoming more challenging when dealing with the ageing infrastructure prevalent amongst smaller oil companies. The state-of-the-art technology currently being built into the new multi-million dollar oil and gas platforms of tomorrow will bring all the monitoring and reporting systems necessary together to provide the information required to ensure production is maximised. This option, with its high price tag, is beyond the reach of many companies but with bespoke IT systems falling out of fashion and the advent of ‘buy not build’ software, it is much simpler today to use analytics to ensure that your organisation works and acts more effectively and efficiently.

The challenge of data With the major global companies moving on from the North Sea to the Middle East, the Far East and Australia, there are a number of mid-tier oil companies seeking the best software solution to access data. The data is necessary for a range of reasons, but increasingly to facilitate production where extraction is complex, the fields are smaller and optimising production techniques is a priority. Excel spreadsheets remain a popular tool, and are certainly a favourite of many engineers. But, despite this reluctance to move away from them, spreadsheets are generally recognised to be clunky, manual and time-consuming. An added complication comes when second-hand assets are purchased and bought into an existing organisation. This can mean managers working with disparate systems – a mix of manual, automated and spreadsheets – that are not compatible. This also makes it very difficult to interpret the data correctly and get a true picture of any financial or operational situation. And with vast amounts of data being produced from every aspect of oil and gas exploration and production, data storage and retrieval are important, but data analysis is crucial.

Multiple electronic systems are used to collect data

Special feature

A range of options Traditional business intelligence (BI) systems are notoriously expensive and inflexible. On the other hand, building the system from scratch may be highly flexible, but this takes a large amount of developer time and resources, and so often delivers a system that would have been just what the business needed – a year ago. The situation can change dramatically in less than 12 months, leaving the ‘new’ system out of date even before it is implemented. A popular solution is to take an ‘out of the box’ system and customise it to suit your specific requirements. This is a much more costeffective solution than a tailor-made BI system and not only delivers the functionality required, but generally exceeds it as the system implementer will bring experience, expertise and best practice from the industry. Despite the considerable amounts of data being produced every day by oil and gas companies – and there is no slow down expected in these increasing volumes – big data and analytics were seen by the industry as more useful to organisations that track consumer behaviour. However, the concepts are now both more familiar and more accepted by many as the benefits of harnessing data to work in smarter and faster ways are seen.

An analytics system that is easy to deploy and has a robust application development platform and straightforward architecture, can bring real benefits to understanding and

Cost effective analytics Can all this be delivered and be seen as value for money?

Many organisations have found that implementing a flexible analytics system has meant that they have been able to cut the number of expensive ERP licences they need and reduce the overall cost of managing and interpreting data. Using analytics to interrogate big data to support the decisionmaking processes is a key focus for high performing companies. Automating some decisions – the least complex ones – as well as using analytics to guide the more involved decisions, will help keep costs and risks down, and ensure compliance guidelines are fully adhered to. Using analytics to deliver the information necessary to make businesscritical decisions without delay, wherever the decision maker is and whatever the time of day, will not only ensure existing assets are optimised, but also make the oil and gas industry a safer place.

Aventa Systems and Logi Analytics Aventa Systems and Logi Analytics have formed a strategic partnership to offer oil and gas organisations their combined expertise in analytic intelligence and implementation.

Aventa Systems specialises in delivering integrated production data systems to the international oil and gas industry. The company’s technically advanced systems enable operators to effectively analyse production data for business decisions over the life of their assets.

Logi Analytics enables organisations to put information to work by allowing customers to create web-based BI and analytic environments that can be integrated directly with industry specific applications, systems and processes that support their business – all at a fraction of the cost of other solutions.

For further information please visit: aventa-systems.com logianalytics.com

europeanoilandgas.co.uk

interpreting data, and then aiding key decision making. In addition, the ability to deliver the data visualisations to a mobile device means that business critical decisions really can be made from anywhere, at any time, secure in the knowledge that the data is accurate, reliable and secure. This isn’t just about delivering charts and reports to a tablet or phone, but fully interactive extensions of operational systems.

This means that managers are not hampered by data being inaccessible – stored offshore, for example – or having to wait for data updates, before crucial operational or financial decisions can be made that affect production, asset integration and health and safety. With the right analytics software, data can be pulled from disparate sources and quickly validated to ensure that relevant personnel have the necessary information for analysis, creating what-if scenarios and making recommendations based on current, valid data sets.

European oil & gas

on a per-discipline and sometimes a per-asset basis: health and safety, production reporting, maintenance management, finance and procurement are all managed by different ‘off the shelf’ systems. A lot of time is still spent building complex Excel spreadsheets that pull data from these disparate sources of information in order to present management with the corporate intelligence that they need. But this can cause delays and problems, as well as being time consuming to collect and collate. Only a select number of individuals may know how to compile the management information reports and this can create bottlenecks and hold-ups, leaving engineers without access to the information they need to make timely decisions and recommendations. And fulfilling ad-hoc requests for the management team is nigh on impossible.

Having access to key information wherever you are, at any time of the day or night – and knowing that the data is accurate and reliable – ensures smooth, safe production. But more than this, being able to access accurate and reliable data will make the business more efficient and smarter in many areas, and help to achieve a competitive advantage.

Data security is a key issue too. With business critical and highly confidential information potentially being delivered to a mobile device – be it phone, laptop or tablet – security for these devices must be tightly aligned with the organisation’s existing security hierarchy to avoid any data breaches. But how do you ensure that the software you implement to monitor and manage key metrics is secure, cost effective and is really going to do the job you need?

- Analytics

17

PROFILE

howco group plc

£1.6 MILLION INVESTMENT FOR HOWCO IN SHEFFIELD

Global oil and gas industry distributor

European oil & gas

europeanoilandgas.co.uk

Howco Group plc, the leading

18

distributor of raw materials and manufactured components for wellhead, downhole, safety valves and completion equipment to the international oil and gas industry, has invested over £3m in new equipment and machinery at three of its UK plants, with £1.6m spent at its facility in Sheffield.

Howco’s capital expenditure increases the plant’s overall capacity, capability and helps to secure future growth – it sees investment in a new CNC milling machine along with two purpose built batch heat treatment furnaces.

Explains Andrew Marwood, European operations director: “Our two new aerospace standard heat treatment furnaces feature the latest technology in pulse fired burner control.

Each offers precise temperature control throughout the operating range and, along with a dedicated rapid charger for loading and unloading products, they exceed the demanding standards required by our clients.”

“Both furnaces have access to the multiple quench media of water, polymer and oil making the entire treatment process more cost efficient and effective. They complement our existing range of 30 ton and 10 ton capacity furnaces to form our centre of excellence for processing the high integrity Nickel and Duplex parts which are used extensively throughout the global oil and gas industry.”

Continues Andrew: “We have also purchased further machine tools to enhance our preweld production cell and provide powerful new machining capability. This state-of-the-art horizontal boring machine, the Hyundia Wia KBN 135, provides both additional capacity and capability to finish machine components quickly and efficiently with a maximum component weight of up to 10 ton. This, alongside our continuous investment in specialised tooling, ensures unrivalled capability for Howco within

our market sector.”

“The demand for quality, precision and accuracy is the core ethos of our business – everything we do is designed to give our customers a competitive edge. This latest round of investment underlines our objective of delivering optimum cost and quality for our customers by facilitating quicker deliveries and tighter control on specification resulting in improved performance.”

Malaysia Marine & Heavy Engineering (MMHE)

duty Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE) is focused on the provision of oil and gas engineering and construction works and marine conversion and repair services. These extensive services are offered from two yards – MMHE West Yard and MMHE East Yard, both of which are able to handle complex heavy engineering works for offshore and marine projects.

europeanoilandgas.co.uk

Heavy

Over 40 years of experience it has successfully expanded organically, improving its capabilities and offering by entering strategic partnerships with leading companies such as Technip, Samsung Heavy Industries and ATB Riva.

The business was incorporated in Malaysia in 1989 as a private company, and today it has built a credible reputation for its ability to deliver integrated and complex services, including deepwater oil and gas support services and projects for international clients.

In a further expansion of its capabilities it has more recently developed its expertise in LNG ship repair and dry-docking activities, thus making it a one-stop-shop for marine conversion operations.

During its recent history, MMHE’s yards have delivered a number of key milestones and major projects. For example, in late 2006 Malaysia’s first deepwater project was completed at the site when the FPSO Kikeh and the Kikeh dry tree unit truss SPAR were delivered by MMHE. Not only was this the first deepwater FPSO in Malaysia, it was the first SPAR platform to be installed outside of the Gulf of Mexico. MMHE has also constructed the Gumusut Kakap semifloating production system, the largest of this type of facility in the world to have been fully

European oil & gas

PROFILE

19

20 European oil & gas

europeanoilandgas.co.uk

Malaysia Marine & Heavy Engineering (MMHE) are equipped with the latest technology. For example, in April 2012 the business implemented a comprehensive yard optimisation initiative to both expand yard size and capacity through the acquisition of new land and updating existing equipment. The acquisition of additional land was made to enable the fabrication of offshore oil and gas related structures by being able to cater to the increased engineering, procurement, construction, installation, hook-up and commissioning work. This has increased overall capacity from 69,700MT to 129,700MT, making the business the largest fabricator in Malaysia.

It was during this optimisation programme that the yards were renamed MMHE West Yard and MMHE East Yard.

Alongside its work in the oil and gas industry MMHE provides its expertise to marine repair projects, carrying out work such as general vessel repairs as well as more focused repair and refurbishment programmes. While this work extends to a wide range of marine clients and operational areas, it is primarily aimed at energy-related vessels such as ULCCs, VLCCs, petroleum tankers, chemical tankers, oil rigs and gas carriers.

During their operational lifetime MMHE’s yards have developed a strong reputation for their services in the offshore and marine industries. The business has continued to

Today the business is globally recognised as a regional heavy engineering and deepwater support services provider for the oil and gas deepwater industry, as well as a major player in the LNG ship repair sector

europeanoilandgas.co.uk

built and integrated on land.

Today the business is globally recognised as a regional heavy engineering and deepwater support services provider for the oil and gas deepwater industry, as well as a major player in the LNG ship repair sector. The range of services provided by MMHE is vast, covering engineering and construction, marine conversion, repairs and associated services.

When it comes to offshore construction, MMHE’s yard in Pasir Gudang, Johor, is the only yard in Malaysia that has constructed deepwater oil and gas structures, giving it a considerable advantage over its competitors.

For oil and gas clients the company offers the full range of construction services, from detailed engineering, design and procurement through to construction, installation, hook-up and commissioning (EPCIC).

Typical projects include construction of various offshore equipment such as deepwater facilities like SPAR and semi-submersible structures, integrated platforms, wellhead platforms, compression, dehydration and water injection modules, jackets, living quarters, turret and mooring buoys, and topsides.

MMHE’s capabilities do not just extend to offshore construction, as the business regularly manufactures process skids and modules, steel tubular and piles, and process equipment.

European oil & gas

PROFILE

21

Alongside construction services MMHE provides offshore conversion projects, and is the only of its kind in Malaysia to have completed FPSO and FSO conversion projects. In this field the company represents a one-stop solution for the conversion of a broad range of vessels, such as VLCCs, Aframax tankers, and offshore oil rigs and LNG carriers, into floating structures like FPSOs and FSOs. In order to provide the high levels of service it is renowned for MMHE ensures that both yards

provide clients with the highest levels of services based around its core values of loyalty, integrity, professionalism and cohesiveness. The market continues to look favourable for the foreseeable future, with the company continuing to gain impressive contracts, such as the recently awarded TLP Malikai deepwater project for Shell Petroleum. With the major names in the oil and gas industry continuing to chose MMHE, it appears that the future looks to be successful for the business into the long-term.

Malaysia Marine & Heavy Engineering (MMHE) mhb.co.my

Services Marine and heavy engineering services

asset

European oil & gas

europeanoilandgas.co.uk

A vital

22

ASCO

is the leading provider of integrated offshore support and logistics services to the oil and gas industry. The company, which has operations in the UK, Norway, Holland, the US, Canada, Australia, India, the Caspian, Oman, Singapore and Trinidad, prides itself on tirelessly working to provide the best possible customer service levels. This aim, combined with the highest standards of quality, safety and efficiency, underpins all of ASCO’s extensive services.

“As a sales and services company, customer service has to be at the forefront of everything we do,” confirms Andrew MacDonald, CEO of ASCO Europe. “Not only do we constantly examine the way in which we can improve our services but we continuously look to ways in which we can make it safer, more reliable, more efficient and effective in order to reduce the risk that customers import into their operations by doing business with us.

“We play a role that is often ‘mission critical’, it may be low profile, but we provide services that are essential to our clients, so from the start this approach has been key to our success and the way that we have evolved as a business. So, we’ve built upon a reasonably simple business model of adding value to our customer services by providing clients with the benefits of our fully integrated offering. We can leverage those services by focusing on extremely high levels of client service and the management of safety in the workplace.”

This attitude has been crucial to ASCO’s success and instrumental in building the company’s excellent reputation in the industry, which is respected by clients worldwide. “We have worked hard to build lasting relationships,”

Andrew says. “In fact, in some respects it is easier to name who we don’t work with than who we do, but our customer base covers all of the key operators in the market, as well as a large majority of the tier one contractors. As a service company, however, we feel that it is important to always look to ways of improving our services, and this is something that we have really worked on recently.

“Over the last 12 months for example, we have really ramped up our whole attitude to customer service even further. For a long time we have built our business on the solid principle of delivery of value for our customers - if it doesn’t deliver value to our clients then we don’t want to think about it. So, this year we have enhanced our customer service team quite considerably by investing in and recruiting managers that have specific skills in certain areas of customer service development.

We’ve implemented ‘client advisory boards’ where we listen to our customers in terms of gathering feedback, and we have also launched our Knowledge Zone, which establishes and identifies best practices, processes and procedures all built into a commercially attractive model. All of this enables our clients to get the advantages of ASCO’s experience and shared learning over the years.”

ASCO’s experience, skill and knowledge extends across its service portfolio, enabling the business to provide a fully integrated range of logistics services both on-and offshore. “In terms of our European capabilities we have a fairly comprehensive network of bases that we provide our services from,” Andrew comments. “We operate from a number of locations stretching from the Shetlands, down past Peterhead and Aberdeen in Scotland and Great Yarmouth, and these are our key onshore supply bases.

“On the continent, we have a base in Ijmuiden in the Netherlands, from which we principally support drill units with their waste activities in the Dutch sector, and we also have a strong presence in the Norwegian market supporting oil and gas operations on the Norwegian Continental Shelf (NCS). This stretches from the South right up to the North of the country, where we are well positioned to capitalise on the future developments in the Arctic regions.”

The business is also involved in waste management, which it provides through Enviroco, its specialist environmental services business. “Most recently Enviroco has brought an award winning tank cleaning system to the

PROFILE

ASCO’s experience, skill and knowledge extends across its service portfolio, enabling the business to provide a fully integrated range of logistics services both on-and offshore

ASCO ascoworld.com

Services Integrated logistics solutions

europeanoilandgas.co.uk

that we have the people, the technology and the preparedness to assist and support in a costeffective, efficient and sound and safe fashion.”

Decommissioning is set to be just one area of growth for ASCO moving forward, as the business continues to flourish in each of its four regional sectors; Europe, the Americas, Australasia and the Middle East/North Africa.

“In Europe, in terms of the future we will continue to focus on service development and new ways of improving our customer service as well as our internal processes and employee communications and development. We are the market leader and we have to continue to work very hard to maintain that position for the longterm. The bottom line is that we are a service company, and so we must always be improving that service to remain competitive. We have a fantastic pool of knowledge and experience in the business and so if we can continue to understand what our customers want, and how we can deliver that, then I have no doubt that we will grow as a business,” Andrew concludes.

European oil & gas

market,” highlights Andrew. “Tank cleaning is an extremely hazardous operation onboard vessels and this new system is all about reducing the risk for all involved. We really took a step back to look how we could make this safer and after significant investment the system has been introduced to the market with much success.

The key aim was finding the balance in reducing the risk to the personnel involved, while at the same time improving the standards of service that the customer gets in order to maximise their asset utilisation.”

Related to waste management and recycling is the growing North Sea decommissioning market, an area that ASCO has been closely involved with. Not only is the business well placed to grow with the sector it is also a member of industry body Decom North Sea. “Decommissioning is an interesting market,” says Andrew. “It is certainly going to grow and when it does, as a service company it is our job to ensure that the infrastructure is available on a commercially sensitive basis by making certain

ASCO

23

service at your fingertips Our people are our assets. Individuals who work alongside our customers to achieve powerful solutions; with instantly accessible management reporting and intelligence. All possible through combining technology and innovation with a workforce committed to delivering unrivalled customer service.

Over 600 mobile engineers give you greater coverage and faster response, plus our skilled engineering workforce also delivers service solutions to a wide range of plant and ancillary equipment.

It’s all part of our strategy to deliver expert fleet management with true customer focus.

This is how Briggs will transform the industry.

Get in touch

www.briggsequipment.co.uk

Tel: 03301 23 98 14

europeanoilandgas.co.uk

European oil & gas

26

team The clean

Over the past ten years

Thermtech, a Norwegian technology and engineering company, has doubled in size, and in 2008 it was ranked as number one on Deloitte’s Fast 50 in Norway. This success has been established on the vision of setting the global standard for the treatment of drill cuttings, which contain oil from drilling fluids. The tool it developed to reach this goal is Thermomechanical Cuttings Cleaner (TCC) technology.

Patented and highly advanced, TCC is a friction based thermal separation technology

that is able to recover the Base Oil from the Oil Based Mud for re-use, and can be operated both onshore and offshore. The treatment with the TCC represents both the best environmental

and commercial options since the TCC is able to recover the high value Base Oil from the cuttings with the same qualities as the original Base Oil. The last time that Thermtech appeared in European Oil and Gas, sales and marketing director Rocco Valentinetti explained how the company operated: “Across the world there are numerous oil companies of all sizes that require the use of the TCC technology for the treatment of their waste. What Thermtech does is supply this technology, both as complete units to its customers and as manufacturing licenses to its license holders, the industry’s leading service providers, which in turn provide services to the exploration and production companies.”

Operationally, Thermtech is the technology owner of the TCC process, and focuses mainly on selling turnkey solutions to customers that are in, or want to enter into, the treatment business. Thermtech itself does not offer services, but rather, it assists the customers in getting their business up and running.

In addition to the equipment itself, Thermtech offers assistance with permit applications and plant design, education and training of customer’s operators and supervisors, installation and commissioning, operational start up assistance, remote and on site supervision of operations, spare parts and maintenance.

The actual manufacturing is outsourced to professional and experienced manufacturing companies, while Thermtech retains the project

With all the elements recovered and able to be reused with their chemical and physical characteristics still in place, the TCC process has completely eliminated the concept of waste

Thermtech thermtech.no

Products TCC technology and engineering

europeanoilandgas.co.uk

management and carries out the assembly, the installation and the commissioning of the TCC units. All the design work is performed in-house by professional engineers who use advanced software and knowledge tools.

The most important property of the TCC process is its ability to recover every material found within the waste itself, while retaining the same qualities possessed by the original components. This means that at the end of the treatment process, the oil can be re-used and the clean solids can be used in different applications, land filled or discharged to sea. With all the elements recovered and able to be reused with their chemical and physical characteristics still in place, the TCC process has completely eliminated the concept of waste.

The application of the TCC process results in major environmental benefits, these positive results are attracting more and more customers, as they look for ways to adhere to the stricter environmental regulations.

Indeed, the reputation of the TCC process is so strong that Thermtech sometimes finds that some oil companies operating in areas of lax regulation have still adopted its technology, not for any commercial advantage, but mainly to reinforce their ‘green’ reputation and thus emphasise their environmental credentials.

Furthermore, Thermtech’s customers appreciate that the TCC technology keeps the environment clean and, at the same time, creates commercial benefits. The beneficial environmental effect created by the recovery of the Base Oil from the waste also creates a positive income and cost savings. In particular in regions where the Base Oil is imported, such as in the Caspian, it results in an income that is

equivalent to the cost of the recovery operation.

This means that environmental and commercial interests go hand in hand since the recovered Base Oil is re-used to replace the expensive virgin Base Oil, which can be even more costly due to transport costs.

Thermtech affirms that the TCC process challenges any other existing method or technology simply based on the business case itself. Even discharge to sea can be less economic in given situations, in particular if future liability is taken into account.

Going forward, Thermtech has plans for more expansion and growth. It is always investing in research and development into new and more advanced TCC options, such as mobile units or those designed to handle different types of waste.

It is also interested in geographic expansion into new areas that are seeing exciting developments in the oil industry. By maintaining its focus on both the environmental and commercial benefits of TCC technology, Thermtech looks set for a successful future.

Thermtech

European oil & gas

PROFILE

27

europeanoilandgas.co.uk

European oil & gas

28

Dedicated to

innovation

specific client, Amarinth’s solutions fall into a number of categories: process pumps, seal support systems, packages and modules, and spares and service. Its process pumps have a number of applications, such as oil and gas, chemical and industrial process, but for the former market the company offers its API 610 process pumps in OH2 Horizontal and VS4 Vertical series. Now in its eleventh edition, the API 610 standard, which is the specification for centrifugal pumps, is specifically designed and developed to provide technical standards for the pumps supplied in oil and gas related markets such as production, power plants and refinery operations.

Illustrating the innovative and high quality approach of Amarinth, its API 610 pumps have been designed to the latest standards using up to date software as a heavy duty, minimal wear, longlife pump that, due to its modular design, provides clients with a number of options to ensure it meets the most demanding operational requirements.

Amarinth, a leading manufacturer of

pumps for general industrial, chemical and petrochemical applications, was formed to utilise the skills, creativity and passion of people who have worked in the pump industry for many years. The business, which provides clients with made-to-order, customised solutions, can boast more than 300 years’ combined experience among its employees, making it the pump provider of choice for a broad range of industries.

The company was formed in 2002 following the closure of Girdlestone Pumps, itself a well-recognised and highly experienced pump manufacturer. Continuing the quality work and retaining the knowledge of its employees, Amarinth was able to develop quickly. In fact, after initially concentrating on building its reputation in the UK the company quickly and successfully expanded overseas, where it now exports more than 80 per cent of its products.

Today Amarinth offers a large range of pumps and associated solutions, all of which are engineered-to-order and tailored to meet the exact requirements of the individual client according to the highest international standards and cutting-edge technology. It does this through a dedication to customer-oriented service, placing the highest possible emphasis on customer satisfaction delivered through exceptional manufacturing capabilities and an unwavering focus on innovation.

While its products are custom made for a

This particular Amarinth product is widely used across the oil and gas industry by many of the leading companies. In 2008 for example, Amarinth delivered an API 610 pumping solution for a major FPSO project by Aker Floating Production. Aker had a number of specific requirements for this particular project, which due to its short lead-time and lack of final specifications for the pump, required a flexible and responsive supplier able to provide high quality pumping solutions at short notice.

Throughout the project the specifications of the pump changed rapidly yet Amarinth was able to apply its experience and knowledge to successfully navigate the process, meeting the short deadline and providing solutions that met specified performance and DNV witness tests.

More recently Amarinth was involved in a three-way consultation project to develop a small footprint pump and seal support system for the

PROFILE

Of course, these examples highlight just one area of Amarinth’s expertise, but the business is continually developing across its product range in order to maintain its leading position in the market

Amarinth Ltd amarinth.com

Services Pump manufacturer

europeanoilandgas.co.uk

yet Amarinth was able to successfully meet the technical specifications of HHI in just 28 weeks, again demonstrating its ability as a flexible, agile pump manufacturer capable of engineering the most difficult innovations.

Of course, these examples highlight just one area of Amarinth’s expertise, but the business is continually developing across its product range in order to maintain its leading position in the market. Every three to five years it looks at its future product developments, using its expertise and experience to understand what the changing market requirements will be and thus, how to develop the business moving forwards.

Such a dedicated focus on staying ahead of the field has always been a cornerstone of Amarinth’s strategy. Throughout its lifetime the company has relied on its skill and expertise to consistently deliver on its promises by exceeding its customer’s expectations. For a relatively young business this approach has paid handsomely, making its shared objective of being a leader in its field a reality.

European oil & gas

Quad 204 FPSO, which is to be located west of the Shetland Isles upon completion. For this project Amarinth was selected to supply pumps for the produced water treatment and reservoir pressure maintenance re-injection package to be used on the FPSO. However, a number of design challenges predominantly around the space available on board made achieving a final solution particularly challenging.

Using a collaborative approach to the project Amarinth carried out the design work with John Crane and BP engineers to develop an integrated pump and seal support system package that sat on a bespoke baseplate, effectively wrapping the seal support system through 90 degrees around the pumps whilst still maintaining its interoperability and meeting the footprint limitations imposed by BP. Success in this design meant Amarinth was suggested by BP to Hyundai Heavy Industries (HHI) for a second challenging project on the same FPSO. This particularly complex requirement had seen little interest from Amarinth’s competitors due to its difficult nature,

Amarinth

29

europeanoilandgas.co.uk

European oil & gas

30

position Leading

With 35 years experience within the marine industry, Bob Turner utilised his knowledge to establish Romica Engineering Ltd (REL) in 2003; the company designs, manufactures and supplies marine lift equipment and winches for marine site surveys and seismic surveys in the oil and gas, offshore and oceanographic market sectors. “REL itself is an Anglo/Romanian entity, with REL based in the UK and our wholly owned subsidiary TIE Services based in Romania,” explains Bob. “We have been in the industry for ten years now, developing our personnel and our range of products to establish a strong position in the market.”

Looking for high quality engineering skills, a strong design capability and a relatively low cost location to allow for innovative ideas and the development of new systems, REL set its sights on Romania, which it viewed as having a range of benefits for a design and manufacturing firm that wanted to offer turnkey solutions, as Bob elaborates: “Romania was always a well-established heavily engineering based

economy, viewing itself as the main workshop of Eastern Europe. Subsequently, when communism collapsed there was an awful lot of infrastructure, facilities and engineering companies available, which led to the British, Italians and Germans making major efforts to take advantage of the well-trained engineers and decent machine shops.”

As a company starting out, Romania offered REL the opportunity to gain highly skilled engineers and property at a cheaper cost than the UK. “Most of Romania’s engineering involved the mining sectors and heavy industry, which we saw as a great advantage because the UK has had no real heavy engineering commitment in the last 20-30 years. We decided we could be more competitive in Romania as long as we made the right investments,” says Bob. It was Mike Turner, son of Bob, working with a British company that was the catalyst behind REL’s plans to develop operations in Romania. Having witnessed first-hand one firm’s attempt to manufacture in the country, Mike took his knowledge from this experience to try out a new strategy as part of REL. “Mike was previously working for a British company that tried to operate in Romania themselves.

Both that company and REL were attracted to

client aims to achieve.

REL works closely with TIE Services International SRL, the British-owned, Romanianregistered firm, based in Satu Mare, Romania, which has a 7000 square metre fabrication facility; certified to ISO 9001:2000 and accredited to ISO 3834:2006, thus covering the quality requirements for the welding of metallic materials. Furthermore, the factory has two fabrication, machining and assembly lines, both of which are equipped with a 12.5 tonne crane; there is also a shot blasting and paint facility.

To develop and further establish its position, REL has extended the factory to accommodate a larger machine shop, which has a new horizontal borer machining centre with the capabilities to machine large components with minimal handling.

Having taken the time to develop the foundations for success, the future looks positive for REL, which is looking to continue growing its market share through investing in personnel and developing innovative techniques/prototypes for the offshore and marine industries.

Romica Engineering Ltd romica.co.uk

Services Designer, manufacturer and supplier of marine lift equipment

europeanoilandgas.co.uk

the availability of labour, but while the other company didn’t take on board that there was design and the technical capability on offer as well as the manual skills, we harnessed both to be able to offer a turnkey capability through finding the right people, then training them in the right way to get the best results.”

Today REL is a global engineering support services provider from its Romanian base, with sales support provided through a network of agents and alliances with firms in the US, India, Australia. Turkey, China and Korea. “The US and the Far East in particular are areas where REL has been fairly successful and we hope to continue this success into the future,” says Bob. Proud of its flexibility and ability to listen to the needs of its customers, REL identifies the unique needs of clients and finds a solution that will allow them to achieve their objective.

A specialist in the design of umbilical handling winches, it offers a comprehensive range of handling equipment solutions, such as AUVs, ROVs, sound source arrays, seismic recordings and deep-towed survey systems. All are designed in compliance with the latest specific marine-classification society and health and safety requirements.

Through innovation, experience and excellent customer service, REL is able to offer combinations of winch, A-frame and launch systems, suitable for a number of seabed sampling and benthic measurement devices. Its range of products includes a proven deepwater traction winch design, which includes wire monitoring and measurement of the outboard and storage tensions, and a range of winches fitted with a right-angle level wind, which offers the client better use of deck space. With a wide range of equipment, REL can offer its customers a bespoke deck layout design that will suit their operational needs. “Flexibility and listening to the customer are the keys to our success. We listen to requirements and fully identify what it is our client wants before we offer a solution,” says Bob. To ensure there is no confusion, REL travels around the globe to meet clients faceto-face and discuss the objective and what the

Romica Engineering

European oil & gas

PROFILE

31

European oil & gas

europeanoilandgas.co.uk

Scaling new

32

Megarme

, which was founded in 1993 in the UAE, is a specialist rope access solutions provider that offers turnkey inspection, repair and maintenance services to clients throughout the Middle East.

The company currently operates from offices in Dubai, Abu Dhabi and Qatar, covering the wider GCC through agency agreements, and it has plans in place to open a fourth facility in Saudi Arabia in 2014. Megarme serves clients through two distinct divisions - the access division and the inspection and engineering division.

This year marks Megarme’s 20th anniversary, and as managing director Billy Harkin explains, it has built a strong reputation based on a number of key factors: “Reliability, quality and safety,” he says. “We have consistently been delivering project after project on time and to budget for two decades now and our clients know that they can always rely on us to get the job done. We have always been a strong brand synonymous with these qualities, but it was a management buyout in 2006 and the subsequent setup of the divisional structure in the business that has allowed the group to achieve the considerable growth that we’ve had, and to position ourselves as a leader and innovator within our chosen industries.”

Throughout this more recent period, Megarme has aligned its objectives and consolidated its business in order to achieve continued growth.

Importantly, as Billy explains, the business has built longstanding relationships with clients, a factor that he earmarks as important to the company’s success. “We have seen a lot of competitors come and go during this time,

but I believe that clients want to deal with an organisation that they can build long-term relations with for many years to come.

“We have ensured excellent client retention within all sectors, which historically are shipyards, rig operators, asset owners and construction companies who have to work within tight timelines and budgets,” he continues. “We represent a one-stop-shop for all of their work at height requirements, which not only means single source contracting for ease of business, but results in other benefits, such as huge cost savings, a lower headcount on site, one time mobilisation/demobilisation and less bed and deck space required offshore. We always work closely with our clients to meet their objectives and understand their needs in terms of their main drivers, so time, money and quality.”

Operationally, each of the company’s two divisions provides distinct advantages to clients.

“The evolution of our access division has meant that we now look at complete access solutions from a 360 degree perspective,” says Billy. “Our philosophy is simple, we try to cater to the complete access requirements of our clients.

So, that means consulting with them to ensure they are always getting the best solution. For example, we can facilitate a turnkey solution to even the most complex access challenge, whether it is conventional rope access, tension net and deck systems, training solutions, or even a hybrid of all of the above. In conjunction with this we can also provide all of the trades and disciplines required to execute any job scope, and can also allow third party services to gain entry and egress the area if necessary.”

Megarme has invested considerably in its

PROFILE

Megarme is highly reputed for its safe, reliable and high quality approach, a reputation that the company maintains through stringent training at its own state-of-the-art facility

Megarme megarme.com

Services Specialist rope access solutions

europeanoilandgas.co.uk

office in Saudi Arabia in 2014. Its a huge market and a notoriously difficult one to penetrate, but the regional knowledge that we have within the GCC gives us a huge advantage to overcome the many challenges that are inherent with operating a specialist services company in this part of the world.

“We are also being presented with increasing opportunities in North and West Africa, which are being explored, and we have had a JV in India for the last two years as well. Also, we work in the Caspian region through our partners there, mobilising projects in Azerbaijan and Kazakhstan, which are other growth areas for us. Ultimately we want to continue to innovate and grow at the trajectory we have been and prove our replicable business model works in a number of other countries in the MENA region. I think that the next decade will be very interesting, and we are poised to accelerate our growth and potential from the strong foundations that we have established over the last two decades,” he concludes.

European oil & gas

inspection and engineering division in order to construct and approve an RT bunker facility that would position it as a first tier inspection and engineering contractor. “This is a mandatory requirement to store and transport the isotopes necessary to carry out radiographic testing, which is one of the NDT disciplines required under the long-term inspection contracts in our region,” highlights Billy. “The process took some time and investment for the construction, as well as the stringent new regulations that were being implemented by the newly formed Federal Authority for Nuclear Regulation (FANR), but since then we have secured a couple of long-term inspection contracts with Occidental in Qatar and Total ABK in Abu Dhabi as well as other work with international and local EPC contractors.”

Megarme is highly reputed for its safe, reliable and high quality approach, a reputation that the company maintains through stringent training at its own state-of-the-art facility. “The Megarme Training Center (MTC) is located in Dubai Investment Park and is the best of its kind in the

Megarme

33

region,” Billy adds. “It is an 18 metre high facility that caters to the highest IRATA standards and can be used for basic or bespoke WAH training packages.”

Although Megarme has only been operational for two decades, Billy admits that further growth is high on the agenda. “As we approach the halfway mark in 2013 our main focus is that we stay on track to achieve our ambitious growth targets, whilst staying within our budgets for the year. As mentioned, we are opening our new

europeanoilandgas.co.uk

European oil & gas

34

Germany Made in

Since 1990, ALZ GmbH

has designed and manufactured heat exchangers with bare and finned tubes as well as whole air cooled heat exchanger units and air cooled condensers (ACC) for turbine exhaust steam.

Last featured in European Oil and Gas in mid2012, since that time the company has invested in two new welding machines in order to keep its facilities up-to-date, as Mark Koch, managing director, explained: “Welding is the most important part of our manufacturing process for a pressure vessel, and therefore we always try to optimise our techniques, procedures and machines. We don’t need to add to our floor space at the moment so are targeting our investments on the fabrication side.”

Mark went on to elaborate further about the company’s in-house expertise: “We do all the welding work here in our workshop in Dorsten in Germany although it might lead to slightly higher overall prices due to higher labour costs in Germany. Nevertheless, we do promote the fact that these products are manufactured in Germany as an advantage; having fabrication very close to the engineering and other departments is beneficial, as it makes us very flexible at times. It means we are able to help our customers if they have to reschedule anything, and we can implement last minute changes.”

He continued: “I still think it’s important that you adhere to a certain standard of quality, flexibility and reliability. Unfortunately the market does not always really honour that, but that’s the competition we have to face and we still think it’s a good idea to fabricate in Germany.”

Of course, there is an association with the highest standards of quality when a product is labelled as ‘Made in Germany’, and ALZ relates the initial excellence of a product to the customer’s overall satisfaction: “The best end result for us is that we deliver and erect the cooler and more or less do not hear anything again after that. This means the cooler works perfectly and causes the customer no trouble. It’s a fact that if you ask the client’s engineer how the cooler is working, the best response you can get is ‘very well’ – it means everything is performing as it should. This is why quality is important for us at every stage from engineering to fabrication, to erection and commissioning onsite.

“This is also beneficial when you consider getting repeat business – we don’t want our customers to order once and then never again.

Therefore we try to reach the plant engineers, and make our coolers so outstanding that when they need another one, they say ‘I want that product from ALZ’.”

The clients that ALZ supplies to are generally based in mainland Europe, but that doesn’t

PROFILE

Welding is the most important part of our manufacturing process for a pressure vessel, and therefore we always try to optimise our techniques, procedures and machines

ALZ GmbH alz-gmbh.de

Products Heat exchangers and aircoolers

europeanoilandgas.co.uk

in a way that we have a lot of stability, and so rather than looking at expansion or recruiting new engineers, we are focusing on getting better known in the markets we are in,” he said.

Although not badly affected by the 2008-2009 economic crisis, ALZ did notice a change in the market in 2010 and business slowed down. “But we are still able to win profitable contracts, and because we work across several sectors we can focus our energy on the ones where our clients are investing,” said Mark. “So for example waste to energy plants and biomass plants are pretty slow, but gas transport and storage is pretty good at the moment, and the chemical sector is satisfactory as well.”

He concluded: “Since we are present in several industries, we usually find that when one sector does not invest very much then the other ones have a number of projects underway. Therefore, in 2013 we are focusing on getting as many new contracts as we can and keeping our fabrication facilities busy manufacturing our high quality, reliable products.”

European oil & gas

mean that its products aren’t exported across the globe. Mark gave an example of how this may occur: “Many of our customers have coolers that we fabricate in a package for them, such as manufacturers of gas compressors. They are undertaking business directly with Asia, the Middle East and Africa so they buy coolers from us as a German customer, but the coolers end up wherever they have their projects, which can be worldwide.”

He continued: “But our main customers are in Europe, because the way we are positioned in the market means we can reach this area pretty well. Rather than undertake some significant investments and branch out into new areas of the world that we are not familiar with, we prefer to create a presence on the European map where we’re not currently active. I think we have some work to do with that and we won’t really look outside of Europe until that has been achieved.”

Mark also noted that the company is satisfied with the size and scope of its operations at present: “I think we are positioned in a market

ALZ

35

European oil & gas

europeanoilandgas.co.uk

Firm foundations 36

Strategically located

in the Sultanate of Oman, 220km northwest of Muscat, Port of Sohar is managed by Sohar Industrial Port Company SOAC (SIPC), a 50/50 joint venture between the Government of Oman and the Port of Rotterdam. The two parties signed an agreement in 2002, with first industrial developments beginning at the port in 2004.

Since then, as the port authority and landlord of the Port of Sohar, SIPC has witnessed incredible growth that is set to continue, with current investments exceeding $14 billion. “The port is over ten years old now, and if you look at how it has grown, especially in the last

five years, it is remarkable. Since starting in 2006 we have seen cargo throughput reach more than 44 million tonnes. We have also enjoyed positive growth year on year, particularly in dry and liquid bulk in the last three years; on top of this, more industries are beginning to understand the logistical benefits of Sohar and are deviating towards the port, so for us there has been great progress,� says Edwin Lammers, commercial manager at the Port of Sohar.

Located just outside the Strait of Hormuz, Port of Sohar is close to the booming economies of the Gulf and Indian subcontinent; it also has Abu Dhabi, Dubai, Al Ain and Muscat nearby,

independent terminals. “The way we manage the port is not like any other in the region,” explains Edwin. “The fact we are one of the few ports that is manually operated allows us to attract players with major repute on a global scale. We have four specialised terminals, each of which has its own capacities; the consortium of Khimji Shipping and TM International (TMIL) operates our dry-bulk terminal, they will handle the export of aggregates, then we have C Steinweg Oman, which has a head office in Holland and operates all dry-bulk, break bulk and container stuffing and stripping operations at the Port.

Hutchinson Whampoa, a world leading port investor, developer and operator, chose Sohar as a good base to operate from due to its base in the GCC; it operates our container terminal.

Oiltanking Odfjell Terminals operate the central tank terminal for liquid cargo as a joint venture and are a major player at Sohar, particularly now that the petrochemical industry brings great benefits to Oman.”

Due to an increase of bulk storage capacity at the central tank terminal, the Port of Sohar is anticipating a rise in liquid cargoes handled at the port. To prepare for this, it plans to build a new liquid jetty, designed to cater for product tankers reaching 120,000 deadweight tonnes (DWT), which will also further cement the port’s reputation as an up-and-coming liquids hub. “We are going to be tendering for the construction of the jetty in the summer and have entered into a design contract so it can accommodate larger vessels and also handle two large product tankers on either side,” says Edwin. The new jetty is also in preparation for Oiltanking-Odfjell’s plans to expand its worldclass 1,297,800 cubic metre capacity further.

The expansion of the port’s liquid terminal will also allow Oiltanking-Odfjell to cater for the requirements of a planned one million tonnes per annum capacity bitumen refinery at as well as Saudi Arabia, the largest consumer market in the region, in direct reach. “Our location is key to our success, but without the right foundations a company gets nowhere.

We are doing very well in setting up a worldclass infrastructure to ensure our long-term masterplan for the future developments of the port,” says Edwin.

The port houses three clusters, logistics, petrochemicals and metals, where leading global firms such as Vale, Air Liquide, Methanol Holding International, Larsen & Troubo and Jindal Power & Steel are established, while world renowned companies operate the

europeanoilandgas.co.uk

Port of Sohar

European oil & gas

PROFILE

37

europeanoilandgas.co.uk

European oil & gas

38 Sohar, which Bahrain-based Mashael Group of Companies plans to develop with an investment of approximately $200 million. An agreement was signed between the group and the Port of Sohar on May 30th 2008 for the bitumen refinery, which will be the first in the region.

Targeting the nice bitumen market, the plant will boast state-of-the-art technologies to provide a one-stop bitumen supply centre with a 30,000

barrel per day capacity.

Another major milestone for Port of Sohar is the development agreement it signed with Hutchinson Whampoa in December 2012, which will establish a new 70 hectares container terminal and ensure a capacity growth from 800,000 TEU to 1,500,000 TEU. The agreement will not only expand the total capacity of the container terminal, but will also increase the vessel capacity of the port as a whole. Already benefiting from a deep draft, the investment into seven post-panamax cranes will be able to handle 10,000 – 11,000 TEU ships, putting Sohar in a competitive position for shipping lines bringing their cargoes to Oman by allowing them to skip large container hubs in the region and go direct to the port.

Ongoing developments at the terminals have allowed the Port of Sohar to re-assess and re-develop port infrastructure, which has led to construction plans for the sultanate’s first sugar refinery. The world-class ultra modern refinery will have the capacity to produce one million

Port of Sohar

European oil & gas

Already benefiting from a deep draft, the investment into seven post-panamax cranes will be able to handle 10,000 – 11,000 TEU ships, putting Sohar in a competitive position for shipping lines bringing their cargoes to Oman by allowing them to skip large container hubs in the region and go direct to the port

europeanoilandgas.co.uk

PROFILE

39

tonnes of the highest quality refined sugar per year, with construction commencing in the third quarter of 2013. Production is expected to begin in the third quarter of 2015, with full production expected at the start of 2016. “It was the devastating cyclone in 2007 that led to the Omani Government taking a strategic strategy towards food security,” says Edwin. “At the time we felt we didn’t know how to incorporate agro bulk into our port development, but over time

we realised it was an interesting market and decided to develop a facility that can handle one million tonnes of raw sugar as well as the import of grains. This will result in lower food prices in Oman and costs remaining at a controlled level.”

With massive investments and increased demand for services within it, the future looks positive for Port of Sohar, which will continue to maintain high standards and the latest technologies to ensure efficiency, safety and profitability. Furthermore, the port will also be focusing on Freezone Sohar, which is adjacent to the port and provides investors an excellent product distribution base to a consumer market of nearly two billion. “We aim to create a circle that will lead to the port’s continued growth by attracting more opportunities to the Freezone, which will make the port more attractive to shipping lines. This circle will continue to draw in more ships and more opportunities and we anticipate that over time the world will know where Sohar is and the wide range of materials we can handle,” concludes Edwin.

Port of Sohar portofsohar.com

Services Logistics, petrochemicals and metals

khimji ramdas shipping

Khimji Ramdas Shipping is part the Khimji Ramdas (KR) Group, one of the biggest conglomerates of Oman. The KR group has grown to this stature through its unwavering focus, fuelled by the passion to lead; a distinct attribute, that has helped it consistently maintain its leading position. With a loyal and committed workforce of over 5000 people spread across Oman, UAE and India, Khimji Ramdas’ massive infrastructure, extensive and deeply interconnected distribution network, backed by large warehouse facilities and an efficient supply chain, have given it a competitive edge in the business landscape. Moving from strength to strength since its inception in 1870, KR Group has evolved to become a well-diversified business group in four key areas of operations, viz. Consumer Products, Infrastructure, Lifestyle and Projects & Logistics.

At the core of KR Projects & Logistics Group of KR is its marine operation. This Group has maintained its pioneering presence for decades in ocean cruise, ferry operations, bulk vessels, tankers, product carriers, common carrier feeders, air cargo & ship supply and stores.

Khimji Ramdas Shipping provides comprehensive cargo movement by air, sea and road. As a specialist in Ship Agency, the division’s expertise cuts across cruise, navy and bulk vessels husbanding, tanker and project cargo vessel operations, common carrier feeder operations, defense logistics support and Stevedoring, bunker management and marine fuel supplies, LNG tankers, yacht handling including, ship chartering and broking, and freight forwarding. Khimji Ramdas Shipping handles the majority of the cruise vessel’s, Naval vessels and bulk traffic, besides common carrier agency operation. It represents Sea Consortium, one of the largest common carrier operators in the world. The Shipping division also manages the Bulk Mineral Terminal at Port of Sohar (in partnership with TM International Logistics, Kolkatta, India) along with break bulk agencies, besides fast ferry ground handling operations for National Ferry Company. The Logistics wing of KR Shipping Clearing and Forwarding Services including customs clearance and delivery in all sea and airports, warehouse and storage services. Through its large fleet of 50 plus trailers and trucks, it specializes in inland transportation of special project cargo. The Air Cargo unit of KR Shipping represents Etihad Cargo to offer worldwide door-to-door services. The unit also offers chartered flights for cargo and passengers including airport-to-airport and global relocation services.

Khimji Ramdas Shipping has a joint venture operation in Oman with Kuehne + Nagel, one of the world's largest freight forwarding companies. It offers best-in-class integrated logistics solutions. Middle East Fuji Khimji's provides a complete range of maintenance, repair & operations, Chandlery and provision supplies. Khimji’s Sparkle Marine Services offers all marine related services to the ports including port management services, tug services, mooring and pilotage services. Schenker Khimji’s is a joint venture between Khimji Ramdas Shipping and DB Schenker, the world’s second largest transportation and logistics service provider. It has built an extensive client base in Oman due to its impeccable service and infrastructure. Khimji’s House of Travel is among the most preferred travel and tour operators in Oman. Al Ahlia Environmental Services is a joint venture company between Khimji Ramdas and Ramky Enviro Engineers, India; it has the capability to build and manage solid (municipal) and hazardous waste and also harness the process for power generation. Khimji Ramdas Insurance Services are a full-fledged insurance broker addressing the growing needs of the market. Khimji Ramdas Shipping has offices in Dubai, Fujairah, Khasab, Muscat, Sohar, Sur, Duqm and Salalah.

europeanoilandgas.co.uk

European oil & gas

42

game Generation Cummins Inc

Haven Fire and Safety Haven Fire and Safety is a wellestablished provider of fire and safety solutions to the oil, gas, power and aviation industries, specialising in custom engineered solutions covering key market sector requirements.

The company utilises its experienced in house design team together with its agency products from world leaders such as Ansul, Autronica, Hygood, FireDos, Stang and others.

Haven’s services include high and low expansion foam systems for aircraft hangars, tank farms etc, integrated fire & gas systems third party certified to IEC 61508 SIL 2, flammable and toxic gas monitoring and service maintenance/inspection.

., a global power leader, is a corporation of complementary business units that design, manufacture, distribute and service engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems.

Cummins Inc.’s presence in the Middle East began in 1956 and by early 2000, Cummins Middle East FZE, the first wholly-owned Cummins Inc. distributor in the region, was established. In order for Cummins to strengthen its distribution network’s reach and better support the increasingly growing engine population in the wider region, the Cummins Middle East Regional Distribution Organisation was set up in 2006 and now encompasses responsibility for the following 12 countries; UAE, Bahrain, Qatar, Yemen, Oman, Saudi Arabia, Kuwait, Jordan, Iraq, Lebanon, Afghanistan, and Pakistan. In May of 2010, Cummins ME RDO and Cummins Middle East FZE inaugurated their joint headquarters in the United Arab Emirates.

Rachid Ouenniche, managing director of the Cummins distribution business in the Middle East explained how the subsidiary operates: “Cummins Inc. is known as the largest independent engine manufacturer, however as we don’t have a lot of manufacturing in the

Middle East we don’t sell loose engines to truck makers or other manufacturers who make heavy machinery.

“Rather, as there is a lot of oil and gas in the Middle East we supply engines for drilling operations, as well as power generators, in order to help close the gap between what the grid can provide for electricity or power needs and what the demand is. We also provide engines for other industrial applications such as mud pump or dredging pumps and various other types of machinery in oil and gas fields.”

He added: “The fact that we are a fully owned subsidiary of Cummins allows us direct access to the factory that maybe our competition doesn’t have. This means we manufacture these engines and generators as well as selling and servicing them. That is certainly an advantage.”

Another benefit of working with Cummins Middle East is its distribution network, as Rachid highlighted: “We believe we have one of the most expansive distribution networks, not only in the Middle East, but in the world,” he said.

“Specifically in this region we have distributors in every country where we operate.

“In addition, we also have a new High Horse Power Master Rebuild Centre in Dubai. It’s the first of its kind in the region, and was opened in 2012. It’s a state-of-the-art facility and it provides our customers what they need - a very

venture with Jaidah’s Heavy Equipment Division - a subsidiary of one of Qatar’s largest multiproduct importers and retailers, Jaidah Group.

This is all part of our growth strategy, and through this approach we continue to win more contracts with large oil and gas companies.”

These deals are with clients from all over the Gulf, including Iraq, Saudi Arabia, Kuwait, Oman, and in the UEA. “We have active projects that we are working on right now, as well as some under development that will hit the market in 2014/2015 and we believe these will be game changers in the industry,” added Rachid. “These are new engine platforms that we developed over several years and are very significant products.”

Indeed, these products will reflect the extensive resources that Cummins dedicates to research and development (R&D). “Cummins allocated one billion dollars to R&D last year, which gives an indication of what kind of investments we are making into our upcoming products,” said Rachid. “There is a lot of confidence in the future of Cummins in this market and we are very excited about the products and services we will be offering going forward.”

We also have customers who sometimes prefer to do their own maintenance on Cummins engines and we want to make sure that they have all the tools necessary to do that successfully

Cummins Middle East FZE middleeast.cummins.com

Services Power generation

europeanoilandgas.co.uk

quick and efficient way to rebuild their engines to the same quality standards all Cummins factories would offer.”

Another key achievement is the division’s certified Training Centre, which is dedicated to the training of in-house staff and valuable customers. “We have increased the number of employees and technicians particularly over the last three years in the Middle East, and we need to make sure they are trained and certified for the engines that they work on,” said Rachid. “We also have customers who sometimes prefer to do their own maintenance on Cummins engines and we want to make sure that they have all the tools necessary to do that successfully.”

Given the amount of investment Cummins is making in the Middle East region, it is obvious that the company considers this to be an emerging market, with great possibilities. “If we look at our five year plans we are continuing to invest in this business because we believe the Middle East market will see significant growth and we plan to be part of that story,” confirmed Rachid.

“Over the past three to four years we have opened new facilities, hired more people and in 2012 started Cummins Qatar LLC; a joint

Cummins Middle East

European oil & gas

PROFILE

43

WWW.DEHOOP.NET

InnovatIon combIned wIth more than 120 years of experIence

Shipyard De Hoop concentrates on designing, engineering and building custom vessels, for both the inland and seagoing markets. The yard has all the core disciplines in house to provide clients with creative and innovative solutions, both in design and production. De Hoop is committed to a customer-oriented, goal-based approach in which quality and flexibility are paramount.

PROFILE

SeaMar

package in the range of services it is able to provide. Early on in its life, as its service package increased and its list of clients grew, the company moved to a modern well equipped office space and warehouses, from where it still operates today. Continued expansion means that today SeaMar Services provides agency management and logistics services to the major offshore construction, survey and diving companies in the industry, operating a 24 hours per day, seven days per week service in every port in the Netherlands. This extensive network is successful in large part due to the dedicated and highly experienced personnel that the company employs, all of whom have a wide range of knowledge in various aspects of the marine and offshore markets and a strong network of suppliers built on a solid, trusting relationship.

As a mark of its quality, in October 2012 SeaMar Services was ISO 9001 : 2008 accredited by Det Norske Vertitas, and in June 2013 it received its AEO (Authorised Economic Operator) Certificate from the Dutch Customs.

It is in the field of vessel management and vessel agency that SeaMar built its reputation among clients such as DeepOcean, Subsea 7, Oceanteam, GSP Offshore (Grup Servicii Petroliere SA), Bluestream, and Fugro. Under this banner, the business covers all aspects of agency and management, so providing such services as vessel and project management, crew management, vessel brokerage, logistics support, and vessel agency services for vessels that visit Den Helder, Ijmuiden or any other port in the Netherlands.

In terms of vessel management, SeaMar

European oil & gas

SeaMar Services BV

is a marketleading agency services business that works in the offshore and shipping industries. The company is widely known as the SeaMar Group of companies, which with its subsidiaries offers an all-round service package for the offshore and marine sectors in the North Sea market. This package encompasses such services as vessel management, vessel agency services, shipping, customs formalities, freight forwarding, and other services such as purchasing, vessel brokerage, and office/storage facilities.

Based in Den Helder in the Netherlands, SeaMar Services was established in 2000 by current managing director, Leo Balkema, who himself has more than a quarter of a century of experience in the sector. Speaking to European Oil and Gas in 2009, Leo said of the company’s establishment: “We have a small team, which is very experienced in the industry, and which is familiar with vessel management. When I started the company, my database of clients came from the 15 years that I spent as operations manager, then general manager, of DSND/SeaTeam in the Netherlands.

My colleagues have also been working in this industry for very many years. Because of this we are able to react quickly and competently to our clients’ needs. We have been recognised for our flexibility and our know-how within our logistics operations. It is key to our success to ensure that lines of communication between ourselves and the customers are always open, and that we have a very personal approach.”

Since Leo established the company it has continued to develop, both increasing in size and

europeanoilandgas.co.uk

Complete service

45

46 European oil & gas

europeanoilandgas.co.uk

With more than 120 years of experience Shipyard De Hoop was founded in 1889 and has developed into one of the most established yards of the Dutch shipbuilding industry. At Shipyard De Hoop, the focus is on designing, engineering and building custom vessels, for both the inland and seagoing markets.

Using a characteristic down to earth approach, the yard provides all Dutch built craft for niche markets.

Full life cycle support Shipyard De Hoop aims to deliver a complete package of products and services to support ship owners throughout the lifetime of their vessel. The package includes: customer finance, design studies, turnkey shipbuilding, designing & building interiors and ship repair, maintenance & conversions.

De Hoop facilities Shipyard De Hoop has two shipbuilding facilities, one in the Dutch province of Gelderland (De Hoop Lobith) and the other in the province of Groningen (De Hoop Foxhol). At both sites all the required core disciplines are in-house to build a complete vessel. To support both facilities there is an outfit quay in the Rotterdam harbour area.

Company values De Hoop’s staff are committed to a customer-oriented ethic in which quality, creativity, innovation and flexibility towards the client are paramount. The shipyards pride themselves on embracing the latest technology, constantly investing in new facilities, evolving services and expanding their expertise. Each product is unique, built with a goal-based approach and always delivered on time.

is capable of managing a clients’ vessel in an efficient and effective manner, carrying out manning, maintenance, dry-docking, certification, flag state issues, and HSE. It also is responsible for International Safety Management (ISM) and International Ship and Port facility Security code (ISPS) issues.

For clients visiting ports in the Netherlands SeaMar represents a reliable ship’s agency with a 24/7 service and extensive supplier network, giving it the capability of fulfilling all vessel requirements at ports such as Den Helder, Ijmuiden, Beverwijk, Velsen, Amsterdam, Rotterdam, and Eemshaven. Services here, depending on client requirements, can include berth arrangement and pilot booking, pre-arrival notifications to port authorities, custom’s clearance of cargo, immigration services, stevedoring, forwarding, stores and provision, and waste disposal including sludge and special waste.

To handle its activities in the shipping industry, SeaMar has a subsidiary, SeaMar Shipping BV, which was initially launched in 2001 and then re-launched in 2009. Since that time the subsidiary has been the owner and operator of the ‘SeaMar Splendid’, a modern

vessel that can be utilised for air diving, survey and seismic support operations.

Speaking in 2009 at the time of the relaunch Leo said: “SeaMar Shipping is a ship owning company, launched in 2001 to widen our service package. At that time I bought a four-point mooring support vessel called ‘Inspector’. We then began to do underwater, pipeline and platform inspections in the southern sector, and that last job we did was for Devon Energy in Brazil, as part of a geotechnical project. After that I decided to sell the vessel, as she was becoming a little too old. Now, in 2009, following the recent acquisition of the MV Highland Sprite from Gulf Offshore North Sea Limited, we have started up SeaMar Shipping once more.”

Naturally, since that time SeaMar Shipping has continued to expand and the subsidiary now has various vessels for air diving, survey, seismic support and guard duties that are either owned or under management by SeaMar. The range of vessels gives SeaMar Shipping the opportunity to undertake a range of projects for prestigious clients. For example, in December 2012 the business announced that its vessel, SeaMar Splendid, had been awarded a five year contract with GDF Suez E&P Nederland to support the company’s campaigns on the Dutch Shelf over the period 2013 to 2017. This charter commenced in March this year, with the vessel currently operational from Den Helder.

Another SeaMar subsidiary currently growing is SeaMar Subsea BV, which along with SeaMar Shipping is the other ship owning subsidiary of the SeaMar Group. Early in 2013 SeaMar Subsea entered into a contract with Shipyard de Hoop for the construction of a multi-purpose offshore support vessel that will be manned and operated from the Netherlands and registered in Den Helder. The DP2 class vessel is custom-designed to stringent environmental control specifications, with its diesel electric powerplant providing low fuel consumption, clean ship/green passport/ SPS2008 and high comfort class notification.

Upon delivery it will be the first offshore vessel to be built in the Netherlands to this specification, an indicator of SeaMar’s innovative approach to its business.

The state-of-the-art vessel is set to be completed and delivered in the second quarter of 2014, and as well as its ‘green’ credentials it incorporates a number of other innovative design features such as a long jib length crane, triple moon pools, large under deck workshops and a four point mooring system. Combined, these will give it the ability provide a range of

europeanoilandgas.co.uk

Shipyard De Hoop

SeaMar

European oil & gas

PROFILE

47

European oil & gas

europeanoilandgas.co.uk

PROFILE

48

SeaMar

support roles to the offshore oil and gas and renewables markets. In April SeaMar announced that the vessel has entered into a five year charter contract with DeepOcean, where it will be used for survey, IRM and trenching projects for DeepOcean’s oil and gas and renewables clients. Upon completion the vessel will be named ‘Deep Helder’.

SeaMar’s services are not just confined to the ocean however, as the company can provide a full freight forwarding service whereby it can arrange for goods to be transported by air, sea or road to any destination. By air, for example, the company offers a complete collecting and delivery to airport service, as well as undertaking packing of dangerous goods according to IATA regulations, customs documentation and the handling and delivery of inbound shipments. Similarly, by road customers can rely on SeaMar to offer full loads/ groupage, ‘hot shot’ courier services, oversized shipments and cargo insurance.

In many respects it would be simpler to note the services that SeaMar does not provide to its clients, which at present are few and far between.

Kongsberg Maritime Kongsberg Maritime offers a full range of dynamic positioning systems to keep the vessel within specified position and heading limits. These systems are designed to minimise fuel consumption and wear and tear on the propulsion equipment. The K-Pos dynamic positioning systems are available in single, dual or triple configurations. More than 2500 dynamic positioning systems have been supplied by Kongsberg Maritime.

The company, through its dedication to services has developed the ability to offer a complete A-Z service package. With the company continuing to build on its reputation by adding additional niche services to its portfolio, there is little doubt that for customers in the marine and offshore industries, SeaMar is a name that they can truly rely on, whatever their requirements.

SeaMar seamar.nl

Services Logistics and management services

PROFILE

Triyards SSY

demand Below Wong Bheet Huan, chief executive officer of TRIYARDS

jack-ups, steel structures, FPSO topsides and turrets and jacket, overhaul services, modifications and repair of vessels and rigs, as well as the design and fabrication of offshore equipment, such as heavy lift cranes and winches. Since 2007, the group has delivered two PSVs, one AHTS and two oil tankers and has developed a leading reputation as a builder for Self Elevating Units (SEUs), with six delivered and three on its current order book. Analysts have estimated the group’s net order book to be at $324 million as of 28th February 2013.

As the first in the world to construct the newly designed 450-feet SEU series, known as the BH-450, TRIYARDS has cemented its lead in this segment by securing its second order of the same series within the last 12 months.

Jointly designed by TRIYARDS and a US based engineering design house, the innovative BH-450 are ABS classified, self-propelled units that boast large deck areas and high capacity cranes, on top of individual accommodation for up to 300 personnel. Standing at over 130 metres in length,

European oil & gas

As the fabrication

arm of parent company Ezra Holdings, TRIYARDS began operations in 2005 and has since gained a strong reputation for excellence in the construction of large and sophisticated, technologically advanced, customised offshore support vessels.

Operating out of two strategically located yards within a major shipbuilding cluster along the South China Sea in Vietnam, TRIYARDS SSY in Ho Chi Minh and TRIYARDS SOFEL in Vung Tau, the company offers worldwide cutting-edge engineering, fabrication and ship construction services to both the offshore and marine industries; the group also has an offshore lifting appliance facility, TRIYARDS Houston, which is located in Texas, US. “TRIYARDS is an engineering and fabrications solutions provider focused on the offshore oil and gas industry,” explains Wong Bheet Huan, chief executive officer of TRIYARDS. “TRIYARDS SOFEL and TRIYARDS SSY are equipped with heavy-lift gantry cranes and deepwater berths, and both yards have the capability to undertake large-scale projects to fabricate different components of fixed platforms, as well as vessel conversion and new offshore vessel and jack-up construction. TRIYARDS Houston, meanwhile, produces equipment such as active heave-compensated offshore cranes, A-frames and winches, which can be installed on the selfelevating units and offshore construction vessels that require stringent standards.”

The group’s current scope of services includes vessel design and construction services, the fabrication and assembly of offshore platforms,

europeanoilandgas.co.uk

In

49

50 European oil & gas

europeanoilandgas.co.uk

PROFILE

Triyards SSY Caterpillar Marine Asia Pacific Pte Ltd Caterpillar Marine Asia Pacific Pte Ltd is the authorised dealer for MaK marine and CM engines for oil and gas applications for the Asia Pacific region. It supports customers’ MaK medium speed engine needs for new construction and through life operations from its offices and workshops in Singapore and Shanghai. Caterpillar Marine Asia Pacific is proud of the support it provides EMAS Group and TRIYARDS, including supply of main generator sets for the Lewek Constellation.

Triyards SSY triyards.com

Services Integrated service provider for the offshore, marine and industrial sectors

europeanoilandgas.co.uk

MT heavy-lift crane, comfort class V3 and a clean design, rated NAUT-OSV (A).”

With a focus on the construction of SEUs and high-end sophisticated offshore vessels, TRIYARDS aims to continue its vision of being the preferred engineering, ship construction and fabrications solutions provider to the offshore oil and gas, and marine industries globally. To ensure its strategic goals are successful, the group aims to spend $7 million on a logistics and supply base in Western Australia and move into new product categories, as Wong concludes: “To set TRIYARDS apart from the rest of the yards in the region, the group plans to expand our ship repair capabilities and move into the fabrication of aluminum based vessels such as patrol boats and passenger ferries. The acquisition of a strategically located logistics and supply base in Western Australia will allow us to use the yard as a base to expand our ship repair services beyond Vietnam and will be in line with the group’s strategy to expand its offerings and global presence.”

European oil & gas

the SEUs are capable of working in deep waters up to 90 metres.

Following the design and construction of the BH-450, TRIYARDS made an announcement in May 2013 that it has become one of only three Singapore yards with the capabilities to design and build its own SEUs and jack-ups, and also introduced the new premium class 400 HPHT (high pressure, high temperature) drilling jackup rig, the TDU-400. Dedicated to enhancing its engineering expertise, the group has expanded its scope of products on offer to customers with the lighter weight, competitively priced TDU-400, which can withstand up to 100-knot winds and boasts leg lengths of more than 163 metres. The newly designed SEU can operate in water depths of approximately 120 metres and accommodate up to 220 personnel. The design of the unit’s jacking system was developed in collaboration with Siemens, to reduce operational costs and complexity through the utilisation of more pins as opposed to the usual rack chokes on the legs of the vessel.

51

“Dedicated to providing clients with solutions of the highest quality, TRIYARDS has strong working relationships with some of the world's top technology suppliers to provide for the equipment and systems used in our vessels,” says Wong.

“For example, in our latest design, TRIYARDS is working with Siemens to supply the jacking system for the TDU-400 legs as well as Caterpillar for the supply of our vessel engines.”

Another major contract for TRIYARDS, which is contracted to parent company Ezra Holdings, is the Lewek Constellation, an iceclass ultra-deepwater multi-lay vessel with heavy-lift capabilities. “The Lewek Constellation is capable of operating in water depths exceeding 3000 metres,” enthuses Wong. “It’s stand-out features will include DP3 capability, superior maneuverability, versatility and speed, a 3000

europeanoilandgas.co.uk

European oil & gas

52

way

Where there’s a drill, there’s a

A.Hak Drillcon BV is a specialist in horizontal directional drilling (HDD) crossings, direct pipe drilling methods, micro tunnelling, and auger drilling. Typical applications for A.Hak Drillcon’s services include pipelines for gas transmission, kerosene and oil transportation, fresh and wastewater, telecommunications connections, heat transport systems, landfalls, culverts, inverted siphons, drainage systems, and low-, middle- and high-tension connections. The company is focused on providing a full service to its clients, which means as well as maintaining its own engineering department, A.Hak Drillcon also operates its own fleet of in-use designed rigs. These vary in terms of size and application, from the three-tonne HDD mini drill rig up to the 500 tonne HDD mega drill rig, allowing A.Hak Drillcon to execute a wide scope of projects whether large or small.

Ronald van Krieken, managing director of A.Hak Drillcon, highlighted that the 500 tonne rig mentioned above is a very new investment, which was only delivered at the end of June 2013: “This is our newest HDD rig end and it is one of the largest rigs in the world,” he said. “In addition last year we made an acquisition and invested in five other new rigs, this time of 400 tonne pull back force.”

He continued: “It is one of our unique selling points that we have a lot of HDD rigs, and thanks to our history in this industry we also have a team of very experienced and skilled people to operate them. Many of our employees have over 15 years experience in HDD and this gives us a big advantage, especially on contracts for difficult and large crossings. So for example, we worked on a job in Columbia a few months ago, where we created a very large crossing of 1500 metres for a 42-inch gas pipe in very difficult soil conditions, on budget and on time.

After finishing that job our client give us several other jobs to do in Columbia, and in fact we still are drilling over there now.”

This sort of large project is where A.Hak Drillcon can really shine and in May 2013 it started another significant project, this time working with A.Hak Leidingbouw, building a 60-kilometre high-pressure transport pipeline.

Said Ronald: “This is in the north west part of Holland, close to the city of Amsterdam so comes with a lot of infrastructure challenges. We have to make 12 HDD crossings with drilling lengths of about 800 metres to 1250 metres. The first crossing on that project has been completed, and that was the largest one, of 1250 metres from Amsterdam harbour to the North Sea.”

Ronald was also keen to highlight a very special design and construct project for A.Hak Drillcon, which is called the Shore Approach, also located in the north west of Holland. “This is a unique contract so we are responsible for the engineering and the supply of the pipe, as well as the drilling,” he explained. “We will drill a PE plastic pipe of 42 inches with a length of 1000 metres into the sea. This incorporates new environmental challenges as we are drilling from the beach and so we have to take into account all local activities - from people to animals.”

This required some creative thinking and as Ronald explained, A.Hak Drillcon came up with an original concept: “Normally we would have several trucks transporting pipe over the beach and then we would need to weld the pipeline into one straight one km length on the beach as well. Instead we negotiated with the supplier of the pipeline to make it in one piece of 1000 metres and it’s coming on a boat from Norway directly to our jobsite.”

From looking at all these new contracts, it is clearly an exciting time for A.Hak Drillcon, but nevertheless the company is always looking for new opportunities. Ronald agreed, and highlighted that the business had very recently

set up a drilling company in Nigeria, together with a local company that is specialised in pipeline work. “We will have our own yard and rigs very shortly in the south of Nigeria and we will be drilling a lot of oil and gas pipelines over there.”

He continued: “There is a lot of work in Nigeria, for pipelines and river crossings, so for example, Shell is considering using HDD methods for all its installations instead of normal dredging, because there have been issues in the country with pipelines being damaged when people steal oil. When we use HDD we are at a depth of at least 15 metres so nobody can come into contact with the pipeline.” A.Hak Drillcon will be using this new division to gain more contracts in Nigeria in the future, as well as in the wider West African region.

“This will be one of our key areas, alongside Europe and South America,” added Ronald.

“Europe is where we are based so is of course very important to us, and we are always enhancing our presence across the region – so for example we exhibited at the No-Dig exhibition in Germany, and we are already working on a very exciting 1000 metre crossing in France, which for us is a real breakthrough to the French market.”

Ronald previously mentioned working with Shell, and he noted that A.Hak Drillcon is very keen to work in close partnership with clients. In fact, the company and Shell are now working together on a new drilling technique, which will make it possible to do longer drillings in the future.

“Shell had already undertaken some research and now we have a joint venture,” he said. “We will work together over the next two to three years and hopefully create a drilling technique that should make it possible to do longer crossings than are possible at the moment. This will mean we can achieve a drilling length over 3000 metres.”

Since last appearing in European Oil and Gas A.Hak Drillcon has gone from strength to strength, always supported by its parent company, the A. Hak Park Group. As Ronald concluded, this backing has contributed to its impressive development: “A.Hak is a family company and this makes it much easier to invest in people and equipment,” he said.

“After a simple phone call or meeting with the owner of the company, we can move quickly with our decisions and that has really helped in our success.”

We will work together over the next two to three years and hopefully create a drilling technique that should make it possible to do longer crossings than are possible at the moment. This will mean we can achieve a drilling length over 3000 metres

europeanoilandgas.co.uk

A.Hak Drillcon

European oil & gas

PROFILE

Herrenknecht AG For the construction of 485 kilometers of new pipelines for the Netherland North-South Route, various obstacles such as roads, railways, and rivers have to be crossed underground safely and accurately. Used by A Hak Drillcon, the Herrenknecht Direct Pipe® method has proven its efficiency near Lochem, where a 1400-meter-long pipeline was completely installed in just 11 working days. In the port of Rotterdam, the Hartelkanaal was crossed under space constraints, with steep entry and exit angles.

A.Hak Drillcon a-hakdrillcon.nl

Services Specialist in trenchless technologies

53

europeanoilandgas.co.uk

Comprehensive

European oil & gas

When founder

54

PPG PPG is a global player in anticorrosive coating systems for a wide range of offshore and subsea applications. Its leading SIGMA COATINGS and AMERCOAT brands provide the ultimate protection for new-build or maintenance projects.

Its systems offer proven, trusted and tested performance for offshore assets including NORSOK M-501 approved solutions, hydrocarbon fire protection, PITT-CHAR XP, subsea market leader: PHENGUARD, innovative maintenance solutions: SIGMASHIELD 880 and well established local supply chain for optimal service.

and managing director of Gemini Corrosion Services Ian Guthrie was working offshore in 1982, he saw first-hand the impact of corrosion on scaffold fittings and learned the majority of these fittings were scrapped when returned from the offshore rigs. Seeing a gap in the market, Ian launched Gemini Corrosion Services in a small unit at Spurryhillock Industrial Estate, Stonehaven, 15 miles south of Aberdeen, where he began refurbishing scaffold equipment. This offered offshore companies the benefits of extended asset life expectancy and a fast response turnaround from a local supplier.

Recognising that further opportunities existed within its offshore client base, Gemini increased its range of services in 1985, investing in surface preparation equipment and establishing its corrosion services business. The enhanced business volumes resulting from this increase led to the company relocating to larger premises on the Spurryhillock estate, which became Gemini’s headquarters whilst it continued to develop and expand facilities with the construction of new coating and blast halls and ongoing improvements to its infrastructure.

Furthermore, the company implemented training and development schemes as well as internal promotion to ensure the retention of an experienced and qualified team.

Gemini is today a world leader in protecting

pipework, steel structures and subsea pipelines against corrosion in the oil and gas industry; it has recently expanded its Montrose base from seven acres to ten acres and acquired new heavy lifting equipment as part of an investment of £1.5 million in the building of new facilities. With on-site facilities including a blast bay, thermal spray hall, main spray hall and fully automated metal spray facility at its Montrose base, which the company expanded into in 2009, Gemini can offer complete standard or bespoke solutions to its long-standing and extensive client base. Over 30 years it has developed its flexible coating services for new equipment, whether land based or offshore, topside or subsea, as well as offering refurbishment and upgrade of old coating systems. Topside coating projects range from the structural components on oil rigs, including accommodation modules and helidecks, through to process and control equipment, such as pipe work (spools) and valves.

Typically based on the NORSOK M501 standard for both paint and thermal spray, the applied coatings’ types, controls application methods and quality are stringently regulated.

For subsea environments, one of the most severe tests for protective coatings, Gemini has established a long and successful history and is able to offer the highest standard quality in this demanding market where any mistakes result in huge expense. This has led to numerous approvals with major blue chip equipment manufacturers; equipment protected by Gemini applied coatings includes BOPs, valves, protection frames, pipelines and risers.

At its Montrose facility the company can take on the most challenging of tasks, with its purpose built main spray hall that covers more than 1000 square metres and comes equipped with two ten tonne overhead cranes for component handling assistance. The ISO 18000 accredited spray hall can produce various coatings from epoxy paint that conforms to NORSOK industry standards, to more specialised systems, such as anti-fouling paint.

Meanwhile, its multi-function thermal spray hall is where both specific surface preparation and thermal spray is undertaken. Believing the basic process of surface preparation is the foundation of its success, the company’s main blast bay is accessible from the main yard and opens in to the main spray hall. Most components are maneuvered in to the bay with fork lifts, while larger items are loaded on to bogies by cranes

for TSA coated tubular equipment, such as risers, Gemini designed and constructed a fully automated cutting-edge thermal spray hall, the first of its kind in Europe, and began operations in January 2006. The automated coating is far superior to manual application techniques, as it allows numerous programme processes to be stored and ensures even coating thickness.

Consisting of an automatic pipe manipulator with two high throughput electric arc wire spray units, the facility is designed to ensure the highest quality TSA coatings and is capable of coating pipes from four inches to 48 inches diameter and 6.6 feet to 75 feet in length.

With more than 30 years in the business, the company recognises the pressure surrounding time constraints and the stringent demands for maintaining a high quality service on schedule. Having retained an ethos for the best quality services and facilities, as well as active investigations into innovative coating processes and applications, there is no sign of Gemini getting rusty any time soon.

Gemini Corrosion Services Ltd geminicorrosion.com

Services Surface preparation and protective coating applications

europeanoilandgas.co.uk

before being pushed in on the track systems, thus minimising handling operations.

The company assesses the surface profile and cleanliness in terms of the industry recognised Swedish Standards SA2.5 or SA3 and uses various media dependent on component material, client specifications and required results. For example, chilled iron grit, due to its ability to quickly strip various surface contaminants, is used for aggressive cleaning applications, while aluminium oxide is used on surfaces that can’t be contaminated by ferrous materials; glass bead blasting, meanwhile, produces a clean, bright finish, without dimensional change of parts. In addition to blasting, Gemini has a shot peening facility, which employs spherical shot blasted on to a surface to produce compressive surface stresses, which improve fatigue life.

Used for many years to protect steel work from corrosion, thermal spray coatings have proven an excellent way to protect offshore structures and equipment. To satisfy the demand

Gemini Corrosion Services

European oil & gas

PROFILE

55

56 European oil & gas

europeanoilandgas.co.uk

Strong

appraisal At a time

when supplies of ‘easy’ oil are perhaps falling away, Xcite Energy Limited is marking itself out as an appraisal and development company focusing on offshore heavy oil. The company believes that this area presents a niche for significant growth and value addition. Through its subsidiary, Xcite

Energy Resources Limited (XER), these activities have so far been focused on the development of discovered resources in the UK North Sea, namely the Bentley field.

“We acquired this field through the Promote Licence Round in 2003,” explains Charles LucasClements, director of strategy and business development. “We’ve pursued a methodical and progressive appraisal programme over the years, enabling us to bring oil to surface in 2007, through to delivering 250 million barrels of 2P reserves in 2013 after a highly successful pre-production extended well test (“EWT”) which was completed in September 2012. We also have peripheral assets and were awarded three adjacent blocks in the 27th Licensing Round last year.”

Looking at this activity in more detail, XER has actually successfully conducted three drilling programmes with five penetrations of the field, including sidetracks and laterals, since the licence award. The total investment to date has been around $350 million, approximately $250 million of which went into the EWT. “Throughout the EWT we gathered a vast amount of information, which together with new 3D seismic, has enabled us to increase our in-place volumes, revise our development plan and materially increase our reserves. It has required a long year of hard work to deliver, but the EWT has met and exceeded our expectations not only in its results, but also the quality and extent of data that was collected,” enthuses Charles.

In preparation for the EWT, XER expanded its corporate office to bring in necessary skills

europeanoilandgas.co.uk

Xcite Energy Resources

European oil & gas

PROFILE

57

Xcite Energy Resources

European oil & gas

europeanoilandgas.co.uk

PROFILE

58

including the appointment of a new operations director, operations manager, and engineering manager. “I think that key to our success has been finding highly experienced people that can really contribute to the team,” notes Charles.

“As well as operations, we have been building up our engineering and well completion skills sets, based on the importance of drilling and operations going forward.”

The results of the EWT have been critical to planning the ongoing development programme, which is split into two phases – Phase 1 and Phase 2, covering the northern and southern areas of the field respectively. The development programme extends over approximately two years with current anticipation of first oil in late 2015, with the phases now being of a similar size, with Phase 2 beginning some five years after the start of Phase 1 and then both running concurrently from that point onwards for the 35 years of field facilities design life. The EWT has also proven up many of the engineering solutions and techniques to be utilised in the development plan, such as the use of an FSO to dehydrate the fluid.

Alongside this work, XER has been running a programme to identify enhanced oil recovery techniques (EOR). After lab work based on samples taken from the reservoir and aquifer, the company has shortlisted polymer injection as the most suitable EOR technique. It is also building a pilot programme into the first stage of development in order to prove the concept, and lead the way for a full EOR implementation in Phase 2.

The year ahead again looks busy for the business as it works to capitalise on the last decade of work in this challenging niche. In a further step forward, XER recently started the farm-out process, which it sees as a key part of the future financing strategy for the development of the field. “We also hope to expand the RBL facility based on the increased scope of the first phase development. These will trigger the full development programme,” notes Charles.

Certainly the industry seems to be pricking up its ears with regards to the progress the company has made in transforming heavy oil resources into viable development propositions, and it comes at a time when heavy oil projects are being advanced in the North Sea. Picking up the thread Charles adds: “In the process of executing the programmes so far we have developed an extensive knowledge, not only of the Bentley field and the engineering solutions needed to successfully commercialise a reservoir of this type, but also how to manage a significant offshore, heavy oil project. One of the key things in this industry is the sharing of knowledge when moving into new areas, and we are keen to do this with others just as they are keen to speak with us.”

Indeed it seems the Bentley field is just the starting point. XER has also been collecting licences in neighbouring blocks, most recently in the aforementioned 27th Licensing Round.

‘It is our belief that these prospects may contain a lighter oil which could be used as a diluent in the future, so the aim is to appraise these with a view to a tie back into Bentley as we go forward,” comments Charles.

“This forms part of our strategic plan for the next few years which is centred on selecting a suitable development partner, completing financing, and getting the Bentley field producing. We also want to prove the EOR techniques through the pilot programme, and implement the second phase of development, whilst continuing to look for other suitable opportunities,” he concludes.

Certainly the industry seems to be pricking up its ears with regards to the progress the company has made in transforming heavy oil resources into viable development propositions

Xcite Energy Resources Limited xcite-energy.com

Services Appraisal and development

PROFILE

titan containers

network has developed a strong network with its regional offices and more than 100 depot locations in Europe to become the single largest privately owned global supplier of shipping

and offshore containers. With a keen eye for new opportunities, TITAN took huge risks in investing throughout the economic crisis in 2009 and has since enjoyed an incredible rate of growth, with pre-tax profits of more than £3 million for the 2012 fiscal year; an increase of over 100 per cent in comparison to 2011. “In the years 2010, 2011 and 2012 we increased the turnover of the company by 100 per cent and the profitability by 600 per cent,” says Layland

Barker, managing director and single shareholder of TITAN Containers. “It was in this time period that we also made a strategic change to place a greater emphasis on rentals and focus on the development of our ArcticStore brand both in the UK and Europe.”

In 2008 the company enhanced its service offering through the acquisition and integration of ArcticStore, which has an emphasis on temperature controlled and refrigerated storage solutions. In preparation for global expansion, the company also acquired the fleet of Container Exchange in 2009, which was incorporated into ArcticStore the same year; furthermore, it acquired Boxtainer Ltd and Canons Park Sweden in 2011 and added more containers and cold stores to its growing fleet with the acquisition of AB Containers in April 2012.

“Refrigeration is our specialist area and has been for the last four to five years. We have always been involved in refrigeration but it really took over when we began our acquisitions in 2008; since then we have built on this service offering and developed new specialist products to suit both the storage market and the offshore market,” says Layland. This strategic decision led to approximately 42 per cent higher revenues in 2012, compared to the previous year, at almost £35 million. The increase in income was also due to expansion into South America, although positive growth was seen throughout all regions during the year.

Available in 10-foot, 20-foot and 40-foot

European oil & gas

Founded in 1987, TITAN Containers

europeanoilandgas.co.uk

A global

59

60 European oil & gas

europeanoilandgas.co.uk

throughout their working life when in use. The company’s DNV reefer containers, available for rental and sale, include features such as 380/440V three phase marine protected energy efficient refrigeration with an in-built data logger from -30C to +30C set point, anti-slip roof strips, corner castings and top lifting pad eyes. The tenfoot containers can be locked together to form an ISO 20-foot formulation to ensure easy and cost effective shipping and a quick delivery time of two to six weeks from the factory. TITAN also offers 20-foot DNV refrigerated containers as well as a wide range of other DNV container types.

The world market is shrinking, with larger players dominating all business segments, including offshore catering, leading Layland to comment: “We live and work in a global economy; users (customers) are looking for global suppliers with the same products and services worldwide. TITAN Containers is one of very few DNV suppliers that operates globally. This is a useful bi-product of our traditional business for more than 25 years with shipping containers.”

Currently operating out of 300 locations worldwide, the future looks positive for TITAN Containers as it continues to consolidate its growth strategy and develop new markets, as Layland concludes: “France is a very new market for us and TITAN Turkey is expected to open next month, meanwhile India will come on later this year. It’s a constant process of developing the business.”

Seven Seas Logistics Seven Seas Logistics’ global network and long-standing reputation in delivering/ repositioning empty high-value containers is gaining a fast growing recognition within the oil and gas sector, for which it provides a cost-effective and reliable point-to-point delivery service of empty DNV equipment – predominantly from factory to place of demand anywhere in the world, and constantly in time-critical situations. Using its established contacts and bulk buying-power within the shipping industry, Seven Seas Logistics secures competitive pricing with many of the world’s key shipping lines; and, on request, manages trucking at each end of the sea voyage, providing a full door-todoor service.

TITAN Containers TITANcontainers.com

Products Containers

europeanoilandgas.co.uk

lengths, ArcticStores are a sophisticated and user-friendly option for many short, medium and long-term storage applications. With an operating range from -40 degrees Celcius to +60 degrees Celcius, subject to the machinery fitted, the cold stores also offer power efficiency, reduced DB emissions and low power consumption. “As a blue-chip supplier we try to do business with blue-chip customers. European High Street supermarkets are big users of our ArcticStores and SuperStores, which is due to the sophisticated, user friendly, environmentally friendly features they have. Our temporary cold stores can be held round the back of a supermarket for two weeks, two months, or even longer than two years,” says Layland.

Operating under five brands, TITAN Containers, ArcticStore, DNV Containers, TITAN Self Storage and TITAN Container Transport, the company can offer its quick and efficient services to a diverse range of customers on an increasing global scale. “TITAN Turkey is opening this year and India will follow either later this year or early next year; we have also been working with our partners in South America for over two years who we have a very close relationship with,” highlights Layland.

“We have been making some big investments in Brazil recently, around $15 million before import duties in DNV compliant refrigerated containers, and TITAN were one of the first to introduce this product to Macaé. Petrobras has said a lot of positive things about a DNV compliance requirement, but due to the lack of availability this regulation has been devalued.”

Due to the booming oil and gas industry in Brazil causing logistical issues there has been a necessity to delay full compliance, a decision that has led to TITAN Containers taking a financial hit, as Layland elaborates: “We are suffering a bit at the moment because DNV is still not essential, but we expect significant developments later in the year when Petrobras will again try to enforce a DNV compliance requirement for all types of containers. Being around as long as we have, we look at the long-term and understand the trade.”

Engineered for user safety and built for customer satisfaction, DNV containers require high quality materials and superior workmanship during construction and stringent production testing to ensure they meet DNV 2.7-1/EN 12079-1 requirements for offshore containers. These test parameters exceed normal operating conditions to ensure continued safety

titan containers

European oil & gas

PROFILE

61

focus

European oil & gas

europeanoilandgas.co.uk

Quality in

62

The full name of AFI

International Construction Equipment (ICE) The Dieseko Group is specialised in the engineering, production, rental and sales of vibratory hammers (resonance free, normal and high frequency & excavator mounted), linear vibratory hammers, pressing machines, power packs (200 – 5000 kW), vibroflots and clamp systems. ICE vibro hammers and powerpacks are manufactured in the Netherlands, developed by the people who know what it means to lay foundations in an environment, encompassing offshore and onshore and multilayer soil situations.

- ‘Alaa for Industry’ - is a perfect representation of how the company regards its customers and operations.

“Alaa is an Arabic word which is connected with ‘success’ and it encompasses a lot in terms of how we serve a variety of industry sectors with a vast range of products,” explained Brian O’Sullivan, CEO. “Our objective is to provide high quality, in-depth engineering solutions to industrial companies in the GCC region, with a strong focus on customer service.”

Founded in 1984, AFI remains a privately owned Saudi company. “We have grown to have 1000 employees based in 18 branches across four countries - Saudi Arabia, Bahrain, Kuwait and Qatar. We are financially a very strong company and we have ambitious aims to grow further over the next few years,” added Brian.

Although the range of services offered by AFI is too vast to list here, its main activities include: 66 Fluid power - hydraulics, pneumatics w Design/manufacturing of hydraulic systems, power packs, cylinders, seals and hoses w Supply and after-sales of components 66 Power transmission products – bearings, belts, chain drives, electric motors, gearboxes, etc.

66 Capital equipment w Truck mounted equipment w Foundation equipment w Weighing & lifting products 66 Manufacturing of w Vacuum jetting tankers/super suckers w Hydraulic cylinders, power packs w Rubber and gasket products

AFI provides these and many other products to over 2000 customers in the GCC region, including renowned blue-chip names such as Aramco, SABIC, Qatar Gas, KNPC, Arcelor Mittal and Halliburton. Brian credits the diversity of the product range as one of the company’s main strengths, but also highlights several others: “We also cover the full lifecycle of products, so we distribute products, have manufacturing solutions in-house and offer aftersales services,” he said.

“We represent some of the leading brands, so our strategy is to represent the number player in the global market. So for example we represent Parker Hydraulics, ASCO Pneumatics, SKF Bearings and are an agent for DuPont.

“Another strong aspect of our business is our focus on quality. We have been ISO compliant for over 15 years and we have a very strong quality team. When a customer visits us, whether they are a local company, a multinational corporation or an EPC contractor, they are always overwhelmed by our dedication to this area.”

He added: “In the oil and gas sector this is obviously very important. So our approach is all about getting it right first time. This works handin-hand with our technical expertise and can-do attitude – companies know they can come to AFI for solutions to their technical problems.”

When it comes to the oil and gas sector specifically, AFI is a leading provider of loading arm installations and service and overhaul work for loading arms. “We represent Emco Wheaton for these products and we have been winning a number of contracts with Saudi Aramco with KNPC in relation to loading arm overhaul, supply and installation. Last year we did over $5 million worth of loading arm projects,” noted Brian. “A recent addition to our product line

PROFILE

Our message to any company, whether they are in engineering, drilling or servicing, if they are looking for an engineering or maintenance solution or a fluid, then they should contact AFI AFI afi.com.sa

Services Engineering products and services for hydraulics, pneumatics, transportation, power transmission and industrial equipment

europeanoilandgas.co.uk

facility where we undertake the refurbishment and repairs of products for a local company, which is active in the oil and gas sector.

“Both of those factories will be taking up a lot of our time this year in terms of getting them finished, and we are also expanding our workshops in Qatar, as well as working on ASME certification for pressure vessel manufacture.

“It is our target to double our turnover in the next three years and so far this year we are well on the way to achieving that objective. I think we are well positioned for the challenges and the engineering opportunities that present themselves in the oil and gas sector in the GCC and I believe there is more potential in this market.

“Our message to any company, whether they are in engineering, drilling or servicing, if they are looking for an engineering or maintenance solution or a fluid, then they should contact AFI. We can give professional assistance, access to a network of technical expertise available throughout the GCC region, and offer an exemplary standard of quality.”

European oil & gas

up is Ingersoll Rand air and hydraulic winches, which are used on oil platforms and refineries.”

He continued: “I think what our oil and gas customers want is a total solution, they want us to deliver on time, to the highest quality standards with the correct documentation and with proper backup and after-sales service. They return to AFI because we can provide that level of service and that coverage across the region.”

Brian sees this combination of strengths as the foundation of future accomplishments. “We want to continue to be successful in winning contracts with large scale industrial customers and develop expertise in new areas,” he said.

“So for example in the last three months we have won some significant maintenance, repair and overhaul (MRO) contracts with international corporations.”

In 2013 AFI is also focusing on a major expansion project, as Brian highlighted: “We are building two new factories, to meet the increasing demand for local manufacturing. And in fact, one of these factories is going to be a

AFI

63

PROFILE

CAN Group

quality European oil & gas

www.europeanoilandgas.co.uk

Consistant

65

Above ENGTEQ’s £5 million stateof-the-art engineering centre has provided its personnel with a top class facility to work from Below CAN’s Repair and Maintenance Business unit installing a replacement caisson underdeck

A Leading global provider of engineering, integrity, inspection and maintenance solutions to the energy industry, CAN Group has evolved alongside the increasing challenges of the energy sector to offer integrated solutions to fulfill the specific needs of clients. With an extensive platform of services and resources that can be delivered by individual companies, dedicated divisions, and specialist teams across the group, CAN also has the ability to merge these with its significant resources to ensure reliability to clients.

“We have three main business units, the first is ENGTEQ which specialises in integrity and engineering consultancy followed by our inspection business, which provides a full range of conventional and specialist services, and finally repair and maintenance, which is a key part of the business and offers clients trade

based maintenance and construction services,” says Grant Wallace, business development director at CAN Group. “We work with major oil and gas companies, such as ConocoPhillips, Britannia, Canadian National Resources and Talisman; most companies have been with us for a long time, which is important because we want to develop long-term, transparent and open relationships with our clients that are more like partnerships. By delivering value for money and added advantages by putting our customers needs first, we benefit from returning work.”

This dedication to offering a personal approach to customer service has led to CAN Group developing an excellent reputation in the oil and gas industry for consistent, high quality service and solutions, which was recently proven when the group won an award from Total last year. “What attracted Total to

K

U

as

g

0

ea k

1, rla , G er RE sis g 2 ro 3 ST nd re Di D P • U ro u 1 e s ag ro lt AN u p 6 . ce, p .c 1 no gr ra .c o 2 Fr D sti am son o m an 1 .u A6 cs s ic ce k L ,

er an eg In ica rit su l y lati on

A ss T R A AD et D • IT V A A P • O ut N IO ro • T n- om CE te N A ub lin ate D L VA eI eM d & c & ti ns o Ul T • P LU on pe ni tra R A As CM E t A D c s o tio ri on D En ses S AD V S n I S i A n g s T g • cs • o in m oft DE I N • B • A ON l ee en w D E u C u VI E dd M c PR rie rin t/D are S E t SI A o A i D E d y T g o E u T • L e R / a C S D s US In • ve nd V ns N ur • tic ND an Vib IC F s I l D r P u o C i r AT en u Em T Ov lat tne pm Imp ES T • D d B ati TIV f l : s t er o o i e O yn ear n E M d ss f en lem : • I ed ssio r 20 FF M D P a E i o t r n O lo n i e i d m S r A • o p T s g nt d ca S • HO n i I i F • i F n c N y e l& t g I rv ixe ati Ne C Ro Ba aul itor T RE Sw ions u E ns ice d on lan t D ing N ar rr pe E e p i an en Ac G +4 de n th EU cin ete • AN ec • C qu • M t d L n w i c a tio or pm e g cti ub CE e , a e U RO R in w w 4 ( s ss em • T on e n ro e ch nd K P fo . 0 ( sio nt an ra • Oi Pd E, ot th , Ge @ m )1 l n i e I eF i M n M c H m s 9 sfo NF An a Ne rm U A is t r 5 e l iel RA aly ): nd ch In LL r th an tr a s 4 m d y t e

Lo Gl

l ca

, ce

a b o

P

en s re l R

! h c a e

PROFILE

CAN Group

Mistras Group Mistras Group is used to provide specialist inspection and monitoring services to CAN Group clients. Since early 2002 Mistras has been monitoring critical areas of offshore platforms using acoustic emission to identify crack initiation, often part of the platform safety case. The monitoring systems are connected real-time to Mistras Monitoring support in Cambridge, and provide a near real-time web feed for the client to view. Information from the system includes high-speed dynamic strain data, which is used to refine fatigue models and optimise lifetime estimates for the asset. Mistras also provides advanced weld inspection services on offshore structures via CAN. One project involved inspecting approximately 1000 metres of structural weld in one month using specialist scanners and crew. High productivity is also provided when corrosion mapping, the Mistras LSI systems being capable of measuring remaining wall thickness through the paint on ten to 100 square metres of steel per day.

us was the different approach we have when working with clients,” says Grant. “We work with our customers, rather than for them, and Total are looking for that sort of close and open relationship with a contractor, where we are very much one team.”

The company was recently awarded a new contract, valued at £15 million - £20 million, with Centrica Energy for the provision of plant inspection, rope access, specialist inspection and NDT services for its East Irish Sea assets.

Starting on 1st January 2013 for a period of five years, the contract has options to be extended further. It is the third time CAN Group has been awarded this contract. “This reinforces the success of our partnership approach to working with clients and delivering consistent, high quality services. We understand their needs and business objectives and support them to achieve this,” added Innes Walker, commercial director at CAN Group.

Headquartered in Aberdeen, with 180 office based support and engineering staff and approximately 600 field personnel, the group focuses on delivering consistent results through its investment in some of the industry’s top talent and ongoing training and development programmes for employees, and its aim to continue to innovate and introduce new services and added value across its three core business units. Innes highlights: “Our key strength is our people. We are careful about whom we recruit and how we train and develop them because that is what gives us consistent results and a high level of corporate knowledge. We also focus on developing our three core business

units, which has led to us being a major player in integrity management for fifteen years now.

Being privately owned we can invest in our business and our people, a lot of whom come into the group as graduates and stay with us long-term because we invest and develop our employees and provide strong career path opportunities and progression for them within the group.”

Earlier this year, the group invested in a stateof-the-art 22,000 square foot, £5 million facility in Aberdeen to house its expanding integrity management and engineering divisions. This part of the operation has now merged into a dedicated business unit - ENGTEQ - and is the evolution of services previously offered within CAN Group over the last three decades.

Following the restructuring of the business, ENGTEQ now has its own independent business and management team wholly focusing on this unit, allowing existing and prospective customers a clearer distinction of its services.

“The ENGTEQ name gives a clearer focus on the full range of engineering services we provide, while also giving the integrity management unit of the business the identity and credit it deserves,” highlights Innes.

Offering new IT systems, first-class office facilities and increased space, the new engineering centre has resulted in a positive working environment and increased productivity. “One of the key priorities for us is how our people benefit from this new centre and what they get out of it,” says Innes. “With all projects and technical resources under one roof it is now easier for our people to work in

European oil & gas

Above Vendor inspection being undertaken by CAN personnel prior to equipment being deployed offshore

www.europeanoilandgas.co.uk

Right ENGTEQ’s directors, from left to right, Grant Wallace, Simon Hurst, Adam Byrne and Innes Walker

67

68 European oil & gas

europeanoilandgas.co.uk

PROFILE

CAN Group

One-off consultancy projects give us the opportunity to apply our expertise and experience whilst continuing to increase our own knowledgebase

challenge in the market. Having recently been awarded the prestigious international safety award with merit for the fifth consecutive year, CAN Group will continue its ongoing commitment to corporate health and safety standards. Looking further ahead, it anticipates significant growth in ENGTEQ while also becoming more active internationally.

CAN Group cangroup.net engteq.com

Services Engineering, inspection and maintenance

European oil & gas

multidisciplinary teams and transfer our cross asset learning across our client base. It is a centre for excellence and the biggest grouping of integrity personnel in Aberdeen by a long way.” Flexibility is key to ENGTEQ’s approach to integrity management as tailored solutions are frequently necessary for the unique requirements of clients, which could involve the full range of services, or a more customised offering. “In the domestic market CAN Group is focusing more on the consultancy and support side of the business, providing one-off integrity management services that our clients require. We are seeing a lot of growth in the integrity management and engineering area already,” says Innes.

A recent one-off consultancy project for the group involved a client’s vessel going into dry dock for refurbishment work, which involved CAN Group offering advice on steel work that should be replaced, to ensure the ongoing structural integrity of the vessel. “One-off consultancy projects give us the opportunity to apply our expertise and experience whilst continuing to increase our own knowledgebase.

Once the project is complete the principal engineer involved will hold a learning session with structural engineers to discuss what happened and why as a way to push the experience through the company and retain it,” highlights Innes. “We do this in a lot of areas, not just for engineers, but it is important for our engineers to understand that they are part of a company and they are training to develop wider skills and gain real knowledge and experience.”

With a focus on steady growth, the company aims to continue offering a personal, transparent and efficient service to its customers in 2013, the group is also looking to resource more skilled, high quality people, which is a major

europeanoilandgas.co.uk

Left Regular Lessons Learned sessions are part of CAN and ENGTEQ’s organisational cultures

69

europeanoilandgas.co.uk

European oil & gas

70

era A new

Since Sevan Marine last featured

in European Oil and Gas Magazine in 2011 the business has undergone a demanding, and somewhat extensive restructuring programme. In May this year the final step of this restructuring was completed, which means that Sevan Marine is now set to start a new era focused on technology, engineering and project development within the FPSO market sector, without its previous direct ownership and operation of assets.

Carl Lieungh, who is CEO at the business, recently expanded on the restructuring of Sevan: “I took the position as CEO on 1st May 2011, so basically I’ve been at the business throughout this changing period of restructure.

Sevan had for some time been experiencing financial difficulties, which prompted the resulting discussions with our creditors and bond holders, as well as with Teekay, who had expressed interest in our FPSO assets. Later that year we received an offer from Teekay that was acceptable to all parties and would involve them acquiring all of our FPSOs, and that ultimately became the restructuring solution for taking Sevan forward.

“This process of selling off our assets essentially alleviated us of more than $1 billion in debt from our balance sheet,” he continued.

“The final piece of this restructuring programme took place recently with the finalisation of the Voyageur FPSO upgrade

programme, which Teekay took over at the beginning on May 2013.”

Following the final act of restructuring Sevan has emerged into a new chapter of its life, taking a slightly different focus and looking at new ways in which it can expand its business and maintain its success. “We surfaced from this as more of an engineering, technology and project development type business, whereas previously we had a build, own operate type model,” says Carl. “Teekay injected $25 million in new equity and now owns 43 per cent of the business, and the shareholders as well as some of the bond holders co-invested an additional $25 million, so at the beginning of 2012 we found ourselves with $50 million in new equity.”

While Sevan has taken a new approach to its business, it is important to note that the company is still very much dedicated to promoting the advantages of the unique concept that made its reputation – the cylindrical hull FPSO. This unique design offers a number of key advantages for operators and Sevan is confident that it can be play an important role in a variety of oil and gas related applications in the future. Some of the key features include: 66 Excellent motion characteristics with proven high uptime 66 No need for costly turret and swivel and hence significantly reduced costs 66 Geostationary hull, which in certain cases also enables environmental friendly electricity from shore connections 66 Reduced offloading risk due to less motion interference with tanker 66 Large number of risers may be installed, and possibilty to use Steel Catenary Risers where applicable 66 Flexible and cost effective construction methodology As part of its new business model, Sevan is looking to find alternative areas of application where the cylindrical hull can be used. In fact, after the restructuring process the company had two partly completed hulls at one of COSCO’s yards in China. “As part of the process we were looking for new projects for the two partly completed hulls,” Carl comments. “Whilst we were primarily targeting FPSO projects we were open to new opportunities in other areas. As we have been unable to find suitable FPSO projects we have entered into an agreement for the first of these hulls to be completed by COSCO as

equipment packages for the topside market.

“It is important to note that while our business model may have changed, our key concept is to focus on feasibility, concept and FEED studies in order to operate as a successful technology and project developer. In doing so we will continue to build up and reinforce the engineering part of our business even further.”

Looking ahead, having successfully restructured its business Sevan is on the verge of an exciting new period. While its approach may have changed, the core attributes of the company remain the same – namely its dedication to providing the best possible standards of technology and quality, and providing the market with its unique, innovative designs. “I think that considering the underlying trends, and the general market condition at present, the future looks very good for us,” says Carl. “Our aim is to secure one new project each year for the foreseeable future, and certainly over the next three to five years we believe that the outlook is both positive and promising.”

Sevan Marine sevanmarine.com

Services Technology, engineering and project development

europeanoilandgas.co.uk

an accommodation unit for a company called Logitel. So, ultimately both units will become accommodation vessels, or floatels, that will be operated by Logitel and we are looking to have the first project completed within 24 months.

We believe that the cylindrical hull will have several advantages compared to existing semisubmersible units, like high stability reserves and variable deck load capacity as well as large storage capacity for fuel and other liquids, which we believe future clients will appreciate.”

As well as searching for new application areas for its design, Sevan has other areas of focus for the future. “Our strategy has three main pillars, of which investigating new applications for our design is one,” Carl confirms. “Another major focus is to continue to develop FPSO projects along a two-pronged approach of working with Teekay for more niche projects and dealing directly with the end client in other instances. The third part of our strategy is to develop our subsidiary, KANFA Group, which specialises in process

Sevan Marine

European oil & gas

PROFILE

71

europeanoilandgas.co.uk

European oil & gas

72

A safe

haven

The Port of Frederikshavn

, known as Frederikshavn Havn, is the leading commercial port in Denmark that primarily functions as a service centre for trade and industry in Frederikshavn and Northern Jutland.

Frederikshavn Havn has a modern and efficient infrastructure and logistically it is ideally placed to give port users and customers easy access to the European motorway and railway networks.

Frederikshavn Havn represents a multifunctional port with operations that include tourism and ferry traffic, bulk cargo handling, oil and gas, cruise, environmental and recycling, and ship repair. The port is the most important and largest ferry port connecting continental Europe with the Scandinavian Penninsula, and is the starting point for ferry traffic to Sweden (Gothenburg) and Norway (Oslo) – and to the Danish islands of Laesoe and Hirsholmene.

Accordingly, Frederikshavn Havn maintains a very high frequency of ferry traffic – up to 15 daily departures to Sweden and Norway, with an annual volume of more than 2.5 million passengers, 0.5 million passenger cars, and approximately three million tonnes of goods.

For Ro-Ro traffic Frederikshavn Havn currently has three dedicated Ro-Ro berths,

one railway berth with Ro-Ro facilities and five ferry berths, one of which is equipped with link-span. Each of these berths features the latest technology and to ensure the highest levels of efficiency each has a dedicated marshalling area with direct connection to the berths. Of course, the location of Frederikshavn Havn means that it is not only ideal for heavier ferry and Ro-Ro traffic, but is also popular for cruise and day trip operators. Using the port as a starting point, cruise companies can operate vessels up to 220 metres length to provide excursions around the local area.

Whilst ferry services have historically been the core business of Frederikshavn Havn, over the last few years the port has increasingly looked to diversify its activities. Among the many alternative operations it has commenced, bulk cargo activity has been a key growth area. In this particular field the port’s activities include the handling and discharge of a wide range of building and road construction materials such as crushed stone, gravel and sand, and the export of recycling materials. The port has been active in this field since 2000, with cargo activities increasing by 75 per cent since that time. Alongside bulk, Frederikshavn

follows an active development and expansion programme in order to ensure that the port can handle the continued business that is being generated. As part of this, in 2013 Frederikshavn Havn is implementing a large expansion programme at the port, which will be overseen by Danish engineering specialist Cowi.

Costing around half a billion Danish Kroner, the programme is designed to accommodate a wider range of business opportunities for the port and the local business community. The expansion itself will include an extension of the port entry from the current width of 93 metres to 150 metres and an increase of the water depth from the present eight metres to a minimum of 12 metres.

After the expansion Frederikshavn Havn will have the capacity to handle larger ships and increased levels of traffic, giving it excellent potential for future growth. With business in all of its key areas continuing to look strong there is little doubt that the port will continue to play a vital role in the Danish maritime sector for many years to come.

Being situated near to the North Sea means that Frederikshavn Havn also has an active role in the oil and gas sector, where the port houses a range of storage facilities for petrochemical products

Frederikshavn Havn fhhavn.dk

Services Commercial port

European oil & gas

Havn also handles general cargo and has the equipment and capabilities to receive all types of ships in this sector. As well as a number of warehouses for goods storage, the port can also provide all of the required equipment needed to handle such goods.

Being situated near to the North Sea means that Frederikshavn Havn also has an active role in the oil and gas sector, where the port houses a range of storage facilities for petrochemical products. At the site, Samtank AS operates a tank farm that handles the storage and distribution of oil for its shareholders, Uno-X and OK. In relation to these activities Frederikshavn Havn provides project cargo handling services, whereby it has the facilities to handle complex project cargo with heavy lift or special requirements.

Frederikshavn Havn is able to offer such a full spectrum of services largely due to its experience and knowledge of the maritime industry. The city of Frederikshavn has a long tradition within the shipbuilding industry, meaning that

Frederikshavn Havn

europeanoilandgas.co.uk

PROFILE

73

Frederikshavn Havn is dedicated to carrying on this reputation. In order to ensure that this background, and the accompanying network of local businesses and suppliers, remains strong, the Maritime Network Frederikshavn was formed in 2005. This is an organisation for the large majority of maritime service companies that work in or near the port and functions as an umbrella for these businesses to promote quality, flexibility, efficiency and safety in the local maritime industry.

Of course, housing such a large network of companies means that Frederikshavn Havn

europeanoilandgas.co.uk

European oil & gas

74

excellence Centre of

Leading manufacturer of American Society for Testing and Materials (ASTM) approved online physical property analysers for the world’s major refining firms in the oil and gas markets, Analytical Technology & Control Ltd (ATAC) also designs and manufactures a wide range of bespoke analyser systems, such as analyser cabinets, field houses, sample conditioning systems and sample recovery units. Established in 1993, the Wiltshire based company enhanced its service offering and system integration capabilities with the acquisition of Sysco Analytics in 2002; Advanced Holdings, a Singapore based leading global supplier of equipment and products to customers in the energy industries, acquired ATAC eight years later in 2010. “Through acquiring the assets of Sysco we gained two established brands, Hallikainen and Hone, which have both been synonymous with physical property analysers since the 1960s,” says Daniel Merriman, sales and marketing director at ATAC. “Meanwhile, the synergistic acquisition of ATAC

by Advanced Holdings has led to us working with two other divisions, California based

Guided Wave, which manufactures NIR & UV/ VIS analysers for the petroleum and chemical industries, and Advanced CAE, a larger scale system integration firm that is able to execute turnkey packages to the oil and gas industry.”

The acquisition of ATAC has resulted in the company gaining a unique position in the market as it now has the facilities to offer turnkey analyser packages to its customers on top of its core business; these packages include equipment such as sample systems and analyser houses. “This extended capability results in a greater added value to our customers,” enthuses Daniel. “Being part of the Advanced Group also gives us the opportunity to develop new product lines and also update various other systems in our product range for release. The recent acquisition of ATOM Instruments is an example of this, by gaining access to the company’s advanced technology, we can create new and exciting products for the petrochemical and refining industries.”

A recent new product, the ATAC 1077 viscometer+, was added to the company’s portfolio of online physical property analysers in January 2013. Setting the standard for viscometers, the product incorporates a unique responsive touch screen that has a Zone 1 IIC rating without the need for purge air. Its modular control assemblies are all plug and play, communicating through an internal CANbus that offers immediate and comprehensive diagnostic capability. Furthermore, the optional addition of a second oil bath to the viscometer+ enables measurement of viscosity at two different reference temperatures, providing a very precise Viscosity Index in accordance with the ASTM strandard. “Through the development of our new viscometer, particularly with its unique touch screen capabilities, we have effectively developed a new common platform for our other products. Over the next two years we will be launching new versions of our analysers, which will boast innovative electronics, touch screen and software,” says Daniel.

With increased demand expected, the company is busy expanding its R&D facilities, as managing director Paul Warburton highlights: “We currently have a very active R&D programme, which has led to an increase in personnel to be a part of these exciting developments. We are also in the process of expanding our R&D facilities here, with two more rooms being constructed. Advanced Holdings is also supporting us financially during

this process as it views ATAC as a centre of excellence for research and development.”

Following the recently launched viscometer+, the company is also due to release a new and enhanced version of its cloud point analyser.

As well as having a more rugged measurement cell, the new analyser utilises digital rather than the earlier analogue control to significantly improve the precision of cloud point detection.

The new version cloud point analyser is also capable of switching between very different petroleum products without the need for operator intervention. ATAC has also introduced hardware improvements that have reduced the product’s maintenance requirements. “The introduction of our newly upgraded physical property analysers is a major focus for us right now; a new vapour pressure analyser is also due to be released soon,” says Daniel.

On top of manufacturing, the company offers maintenance, training, commissioning and consulting services to its customers, so it is imperative staff are fully trained and prepared for working in hazardous areas, as Paul elaborates: “We invest a lot in the training of personnel, particularly when you consider everything we do is related to hazardous operations, we need to ensure our staff not only design and build analysers, but can also offer high quality services such as maintenance to the required standards of the industry.” By rigorously training its staff to be fully qualified with up-to-date credentials, the company can retain a competitive edge over

other firms. “When we present these credentials to our customers, we prove that we are competent, trained and certified to any current regulations that are in place at any refineries around the world,” adds Paul.

Following the acquisition of ATOM in 2013, the company is focusing on the aggressive schedules it has in place to develop new products throughout the rest of the year. It is also executing a major new project to supply multiple analyser systems for the BP Claire Ridge offshore platforms. Looking further ahead, ATAC has a strategic aim to double the size of its business over the next three to five years through increased product developments and acquisitions. “We are also looking to develop a presence in areas that we may not have had much focus on in the past, such as the Americas, and being part of the Advanced Group gives us immediate access to China and the wider Asia Pacific territories, there is a great deal of economic growth and potential,” concludes Paul.

Analytical Technology & Control Ltd (ATAC) atacgroup.com

Services Manufactures online physical property analysers

europeanoilandgas.co.uk

Analytical Technology & Control (atac)

European oil & gas

PROFILE

75

solutions

europeanoilandgas.co.uk

Bespoke

European oil & gas

With a trading history

76

AEG Power Solutions AEG Power Solutions was delighted to be chosen to work with Blackburn-Starling to provide the Shell DEP approved D.C. Chargers and battery systems for the Shell Bacton Rejuvenation project.

of more than 140 years and extensive experience in supplying LV products such as power distribution, motor control centres, package substations, control & instrument panels, as well as providing fully integrated SCADA/PLC/HMI control systems to a diverse range of industry sectors, Blackburn Starling has evolved into a global supplier with an unrivalled reputation for technical excellence and product innovation.

“Blackburn Starling was founded in the 1870’s and started out as a small manufacturing company with a production unit on London Road in the centre of Nottingham. Today we have a 4.5 acre purpose built site situated on the outskirts of the city with full in-house facilities to cover all aspects of metal fabrication, design, manufacture and automated control systems”, explains David Whelan, technical director at Blackburn Starling. “We also have an experienced team of fully trained personnel enabling us to routinely offer complimentary services such as site surveys (onshore/ offshore), project management, installation, commissioning, maintenance, service contracts and training. Since the year 2000 we have diversified our markets with the oil and gas industry one of our main growth areas.”

Blackburn Starling offers a comprehensive range of fully type tested standard built products, utilising proven technology. The company has total in-house manufacturing facilities which

allows flexibility and gives Blackburn Starling the capability to manufacture custom built solutions, tailor-made to satisfy the specific and unique needs of individual customer requirements. By designing, manufacturing and supporting bespoke control systems that are intelligent, reliable, robust, delivered on schedule and offer proven performance, Blackburn Starling guarantees its customers total control.

“We offer a wide range of products including fixed and withdrawable equipment, conventional and intelligent options, fault ratings up to 100kA for one second and ingress ratings up to IP54, all in accordance with our ISO9001 quality assurance accreditation and the latest European Standards,” highlights David. “Our products are fully compliant with the associated specifications that are required throughout the oil and gas sector. We keep fully up to date with the latest standards and operate an ongoing testing policy which keeps us at the forefront of our field.”

With customer demands in control applications becoming increasingly sophisticated and complex and the need for more management information at all strategic levels, Blackburn Starling offers a totally integrated solution from plant sensor throughout to high level management information systems.

Specialising in programming a wide range of SCADA / HMI/ PLC control systems, the company is a Systems Integrator Partner for Siemens, Rockwell, Mitsubishi and many others.

in inspections and repairs that could potentially extend the life cycle of the rig for a further 20 to 30 years. “This increasing demand for our services is related to the life extensions of oil rigs, for example, the customer may have a new gas compressor fitted on to the platform and may require us to build the new switchboard in the existing footprint,” says David. “Our success in securing major contracts of this nature is greatly attributed to our flexibility and ability to manufacture tailor made LV panels to the latest standards. Being able to assure the customer that we can guarantee required delivery dates allows them to plan operation shutdowns with minimum downtime confidently.”

The company is looking to increase its profile in the oil and gas market to ensure future growth and success. “We are a very customer oriented company and we would like to continue to secure the business at this level to build on the successful foundations we have already achieved.

We believe we have the potential for a significant amount of growth in this area, which we can achieve without losing our level of customer focus,” concludes David.

Blackburn Starling & Company Limited blackburn-starling.co.uk

Services Design, manufacture, test, installation, commissioning, maintenance and training – LV electrical control systems

europeanoilandgas.co.uk

Following years of dedication to excellent customer service and innovation, Blackburn Starling has gained an enviable reputation across the globe in a variety of industry sectors including oil and gas, water and sewage, power generation, telecommunications, chemical, rail and transportation. Already well established within the oil and gas market, this sector has been the company’s primary growth area in the past 15 years. “Our greatest strength is that we are an independent manufacturer that is large enough to cope with demand but still small enough to personally care about each and every one of our valued customers,” explains David.

“Everything that we manufacture is produced in our spacious and modern 6500m2 production facility and although we are not tied to any third parties for supply equipment, we do source predominantly from major international suppliers, for which spares and support is available worldwide. This gives us the flexibility to offer the best technical solution at competitive prices to satisfy our clients’ needs.”

Presently working in the oil and gas market with major companies such as Amec, Wood Group Engineering, Shell UK, BP, CNR International, GDF Suez and many others, Blackburn Starling has a multi-million pound portfolio of offshore projects. “We work with the major players in the oil and gas industry undertaking projects as small as offshore site surveys to major multi-million pound overseas installations. To achieve a customer’s programme requirements we have even chartered a Boeing 747 to deliver equipment to a major oil company in the Middle East region,” explains David.

“We have a team of experienced installation and commissioning engineers who are MIST & BOSIET accredited and available for mobilisation when required by our customers.”

Blackburn Starling believes that the increase in refurbishment projects for the company is due to the growing need to extend the life of already standing oil rigs in/close to reservoirs that still contain significant amounts of oil. These rigs are needed for the drilling of oil in previously thought to be depleted areas, which has resulted

Blackburn Starling

European oil & gas

PROFILE

77

78 European oil & gas

europeanoilandgas.co.uk

PROFILE

Apply Leirvik

Below Lars Solberg, managing director of Apply Leirvik

departure for the business after 28 years of shipbuilding, in 1974 Apply Leirvik shifted its focus over to the development of living quarter modules for offshore platforms. Almost 40 years on this has proved to be a shrewd move, particularly in light of the recent struggles of the shipping sector compared with the more buoyant oil and gas industry.

The company quickly established a reputation for its uncompromising quality, and know-how through the delivery of several living quarter and utility modules throughout the 1980s and 1990s. This includes the landmark Snorre living quarters project, which at the time was the largest aluminium structure ever built for the offshore industry. It also formed the basis for Apply Leirvik’s research and development programme surrounding the use of aluminium in offshore modules.

Today Apply Leirvik is the leading EPC contractor for offshore living quarters encompassing everything from engineering and fabrication to assembly and installation.

Having historically concentrated on the North Sea, when it comes to oil and gas applications the company has arguably delivered more living quarter modules into this region than all its competitors put together. In fact the first ever accommodation module delivered by Apply Leirvik over 35 years ago is still in use today on Statoil’s Statfjord A asset.

Of course, in the years that have followed the

requirements for offshore living quarters have moved on significantly as managing director Lars Solberg attests: “The standard of living has continuously improved in terms of things like noise reduction, safety, evacuation systems, and Opex requirements. Living quarters today are more sophisticated than they were even ten years ago, and as Apply Leirvik we are known for our quality high-end solutions. This is the reason why our clients continue to come back to us for their offshore living quarter needs.

“Whilst there are many companies that make living quarters this is often as one of many other activities. At Apply Leirvik we have one focus only, which is living quarter modules, covering all aspects from initial studies and FEED to engineering and fabrication. This means that we have developed a unique competence that none of our competitors have,” he continues.

Furthermore in 2011 Apply Leirvik acquired a 50 per cent stake in Singapore-based Aluminium Offshore, which is the world’s leading provider of aluminium helicopter decks. This has given the business another means of differentiating itself in the market by offering integrated solutions in living quarter modules and helicopter decks.

“Whilst we sell both steel and aluminium quarters, we believe that the latter have some particularly outstanding features compared to steel,” notes Lars. “As with our aluminium helicopter decks, they offer both weight savings and low maintenance, and are better for usage in cold climates so we believe there will be a

European oil & gas

In what appeared to be a complete

europeanoilandgas.co.uk

Good

79

European oil & gas

europeanoilandgas.co.uk

PROFILE

80

Apply Leirvik

growing market for aluminium living quarters.

Last year we sold 40 helicopter decks, and we expect to surpass that figure for this year.”

Switching his focus to what has been happening more recently in the business Lars describes how Apply Leirvik has increased its global penetration: “We have established ourselves in both Canada and Houston, partially as a result of our award of the contract to supply living quarters to ExxonMobil’s Hebron field in offshore New Foundland. Whilst this is a standard modularised living quarter concept, because of New Foundland regulations regarding local content we have had to change our method of working. Typically we fabricate modules at one of our factories and then ship them for assembly at the client’s location, but for this project we have established a joint venture with a local partner NECL to carry out the work.

“We believe that joint venture working will be an ongoing trend as there are several other key markets such as Brazil and parts of Asia where the requirement for local content increases.

Therefore we will probably look to form other partnerships and joint ventures so that we can meet that content requirement,” he adds.

Back in its long established market of the North Sea, Apply Leirvik has also been successful in securing a number of project awards on the UK and Norwegian Continental Shelves. “In total we have around 2.6 billion NOK of orders lined up, which is an all time high,” highlights Lars. “Our most recent delivery was the living quarters for the Gudrun platform for Statoil. We had very good feedback regarding this project due to its on time delivery and high quality, and were even nominated for Statoil’s HSE prize because of our excellent results on that front.

“The analyses that we’ve seen from specialists working on global oil and gas trends suggests that there is going to be ongoing growth of between three and five per cent in the market until at least 2019. When we look at the individual projects coming up this seems to confirm that predication so we see a stable and growing market in the next five years.

“At present we’re focusing on bidding for five major upcoming projects including the Johan Sverdrup and Johan Castberg developments in Norway, as well as others in the UK and the Caspian Sea. Some of these will be awarded in 2014 but this process has already begun so we are hoping to see some success in these as well.

We are seeing a mixture of works in both mature areas where discoveries are still being made, and emerging markets within more challenging locations which increases the requirements towards living quarters,” he concludes.

Having historically concentrated on the North Sea, when it comes to oil and gas applications the company has arguably delivered more living quarter modules into this region than all its competitors put together. In fact the first ever accommodation module delivered by Apply Leirvik over 35 years ago is still in use today on Statoil’s Statfjord A asset Karmøy Trading Karmøy Trading has been supplying Apply Leirvik furniture in its projects since 1998, such as: cabin, fixed, loose, office, hospital, lab furniture, and furniture and shelves for storages and workshops.

Apply Leirvik applyleirvik.no

Products Offshore living quarters

european

from exploration to end user Schofield Publishing Ltd 10 Cringleford Business Centre Intwood Road Cringleford Norwich NR4 6AU T: +44 (0) 1603 274130 F: +44 (0) 1603 274131 Editor Matt High mhigh@schofieldpublishing.co.uk Sales Manager Rob Wagner rwagner@schofieldpublishing.co.uk

europeanoilandgas.co.uk