Oil & Gas Innovation Summer 2014

OIL & GAS INNOVATION

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The Trusted Insider Source

Getting Serious About Leak Detection

Crisis in Iraq: How Will it Effect the Price of Oil? EMERY HILL MEDIA ©

Summer 2014

Exclusive: Universities Key to Combating Skill Shortages

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OIL & GAS INNOVATION sUMMER 2014

CEO Matthew Patten Managing Editor Simon Milliere Technical Director & Website Todd Dobney tdobney@oilandgasinnovation.co.uk Publishing Director Edward Findlay edward@oilandgasinnovation.co.uk Commercial Director Nicholas Parker nparker@oilandgasinnovation.co.uk Office Assistant Janet Elseberg admin@oilandgasinnovation.co.uk Contributing Writers Mylene Daugan mylene@oilandgasinnovation.co.uk Marketing Manager Anja Istenič Market Research Olivier de Colombel Edouard Chapuis Hedlyne Grenot Paolo Traina Dayanch Ylyasov Amara Waqar Smahane Makrini OIL & GAS INNOVATION

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The Trusted Insider Source

Summer 2014

From the Editor: This week the final touches on a new worldwide lending institution was being finalized. The new BRICS Development Bank which is short for Brazil, Russia, India China and South Africa is a new challenge to the leading international lending institutions created just after World War Two, The World Bank and the International Monetary Fund. These five nations represent a coming new world order both economically and politically in terms of the latter being rising stars in what is increasingly looking like a multilateral super power dominated international landscape. But in the 21st century, lending, finance and international banking is seen as both a dominating power and a liberating force interchangeably. And while at least the BRIC part of the acronym has at least a portion of their success due to the Oil and Gas Industry, the industry will also have adapt to the growing demand these countries will have for oil in the face of rising economic prowess. Where does the new BRICS Bank tie in? Well essentially in the modern world if you want to exert real influence and soft power on states in the international arena, you must be able to bail out countries in crisis’s, help with development of a nation’s infrastructure and so on. Traditionally that is what the World Bank and the IMF does, with certain conditions attached of course.

The bank’s primary focus of lending will be infrastructure projects with authorized lending of up to $34 billion annually. South Africa will be the African Headquarters of the Bank named the, “New Development Bank Africa Regional Centre”. The bank will have starting capital of $50 billion, with capital increased to $100 billion over time. Brazil, Russia, India, China and South Africa will initially contribute $10 billion each to bring the total to $50 billion. Each member cannot increase its share of capital without all other 4 members agreeing. This was a primary requirement of India.

The bank will allow new members to join but the BRICS capital share cannot fall below 55%.

There are clear fundamental differences in the structure of the new BRICS Bank relative to its counterparts namely the World Bank and the IMF. The problem the mainly address is that the current system of global governance does not reflect the new economic realities of the 21st century.

For example, many of the existing institutions which were created after WW2 such as the United Nations, World Bank and the IMF do not take in account the rising political and economic power of states such as Brazil and India. The UN had only 5 permanent members on their security council with veto power, which is the UK, USA, Russia, China & France. The IMF is even more unilateral in its decision making ability as the only country that holds veto power in the USA. The reason why this matters is countries who want a say in international matters such as lending and the development of developing countries can potentially hit a roadblock if their policies do not match that of Europe and the United States. This can be frustrating as countries such as India and Brazil are increasingly relying less on the West to sponsor their foreign policies. As for other members, the sanctions being brought onto Russia since it’s annexation in Crimea have definitely helped Russia consider different options for international finance outside of the traditional bases of the EU and the USA. One might go as far as assuming Russia is acting in this manner lately knowing it has these other options now. As for China, they are sitting on over three trillion in reserves and the problem is with its usual policy of buying US treasury bonds, is that US treasury bonds are in a declining state of value. It seems to many that the BRICS are now moving from resource based power to international power very quickly.

It is my pleasure to present to you the Summer 2014 issue of Oil and Gas Innovation, and I hope you enjoy reading this edition. •

EMERY HILL MEDIA ©

Emery Hill Media 37th Floor 1 Canada Square London E14 5AA Tel: +44 203 239 1581 © COPYRIGHT 2014 EMERY HILL MEDIA

Simon Milliere Managing Editor

www.oilandgasinnovation.co.uk

CONTENTS

Industry News 6 Latest News From All Around the World Oil and Gas Innovation’s latest news from around the world.

To see our latest up to date news please visit www.oilandgasinnovation.co.uk

Page 30

Cover Stories & Specials 14 Situation in Iraq

Oil & Gas Innovation’s Mylene Daugan presents a comprehensive review of the crisis in Iraq regarding the rise of ISIS and the potential breakup of the country. What does it mean for the industry?

18 Skill Shortages in the Industry

Oil & Gas Innovation’s second series this year which explores the skill shortage plaguing the Oil and Gas industry. We here from government, industry leaders and the universities whom offer a solution to the issue.

26 Selecting the Correct Alternator

Regular OGI contributor Genco EEC helps explain to the readers how operations on a rig or oil platform can be disrupted unless a company knows the correct size alternator they are using for backup power.

40 Special: Subsea Pipeline Protection

Exploration and Production 30 Safe & Secure Lifting

International Firm on how to keep your subsea assets protected.

OGI gets expert analysis from Nautilus Rigging the importance of vital tools such as industrial strength hooks for lifting operations for Oil and Gas, Offshore etc.

34 Aker Earnings Ahead of Split

Aker Solutions is on track with a plan to split into two companies at the end of September, including one that will keep the current name and be comprised of the Subsea, Umbilical, Engineering, and Maintenance, Modifications and Operations (MMO) areas.

Pipelines & Logistics 36 Drive Systems for Oil and Gas, Offshore Hydrauvision is specialised in customised hydraulic solutions. The company combines state-of-the-art mechanical engineering design with advanced drive technology.

42

OGI also gets expert analysis from Pergam Suisse who manufactures leak detection systems. With monitoring systems of the highest class for science, industry, police and military as well as for the private sector provides Pergam-Suisse AG the widest selection of gas monitoring systems for every need.

Refining and Processing 44 Plastics / Polymer for the Oil and Gas Industry

Plastics have a lot of opportunities as corrosion free, lightweight and durable material for many components and applications in the oil and gas sector. Still, many companies need support to define how to utilise plastics and rubber, select appropriate materials and verify their performance.

46 Corrosion is a Serious Problem in the UK The fight against corrosion costs the UK around 4% of GNP per annum. Key to this fight are the establishment and promotion of sound corrosion management practice.

50 Efficient Liquid Separation

Dr Muller AG helps readers understand the best way to separate liquids in various sectors.

Page 46

Important Dates 54 Upcoming trade shows and conferences

Selected do not miss shows to round up 2014 for the Oil and Gas professional.

4 • Oil and Gas Innovation

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NEWS - MIDDLE EAST NORTH AFRICA

Completion of Algeria Farm-Out Transaction Petroceltic International plc (“Petroceltic” or “the Company”), the independent oil and gas exploration and production company focused on the Middle East, North Africa, Mediterranean and Black Sea regions, is pleased to announce the completion of its sale of an 18.375% interest in the Isarene PSC to Sonatrach, the National Oil and Gas Company of Algeria.

The assignment was effected by way of a sale and purchase agreement, under which Sonatrach has acquired a further 18.375% interest in the Isarene PSC covering Blocks 228 and 229a. The amendment to the Isarene PSC (or ‘Avenant’) required to give effect to the transfer was signed by Sonatrach, Petroceltic and Enel at a ceremony in Algiers on 12 February 2014. This was subsequently ratified by the Algerian Council of Ministers and completion occurred with the publishing of the Avenant in the official journal of Algeria on 18 June 2014 which was made available publically on 7 July 2014.

The terms of the agreement with Sonatrach provide for a consideration of up to a maximum amount of US$180 million. The consideration comprises US$20 million payment on this completion of the transaction, a further US$140 million payment of Petroceltic’s share of Ain Tsila project development cost from the effective date of 4 July 2013, and contingent payments of up to US$20 million based on the achievement of certain project related milestones.

Post completion, Petroceltic has a 38.25% interest, Sonatrach has a 43.375% interest, and Enel maintains its 18.375% interest. Petroceltic remains operator of the license.

Brian O’Cathain, Chief Executive of Petroceltic, commented: “We are delighted to announce the completion of the Sonatrach farm-out. Petroceltic has had a positive and mutually beneficial relationship with Sonatrach throughout the exploration, appraisal and now development phases of the Isarene PSC. The formal ratification of this agreement is a critical step in the overall funding plan for this development project. As development operations ramp-up, we look forward to continuing to work with Sonatrach and Enel to deliver the Ain Tsila Project and to maximise the value of this important national resource for Algeria”•

Farm-in Agreement Accepted for Morocco Woodside advises that it has finalised an agreement with Chariot Oil & Gas to farm-in to the prospective Doukkala Basin offshore north western Morocco.

Under the agreement Woodside acquires an initial 25% participating interest in the Rabat Deep Offshore permits I-VI. The agreement includes an option to acquire an additional 25% and operatorship in these permits for a capped well carry obligation. The agreement is also subject to requiredgovernment approvals.

These undrilled permits are 10,782 km2 in area and water depths range from 150 to 3600 metres.

Woodside CEO Peter Coleman said the farm-in provided an opportunity to secure a large acreage footprint in an emerging petroleum province that is prospective for both oil and gas.

“Exploration in this basin aligns with our strategy to secure new international growth opportunities in frontier and emerging basins characterised by materiality and quality,” said Mr Coleman.

“This opportunity has been supported by Woodside’s disciplined approach to studying regional petroleum systems, including the Atlantic margins, and is a good fit with our core capabilities in deepwater exploration and production.”

The Rabat Deep permits complement Woodside’s acreage position in the nearby Canary Islands and are a further demonstration of continued efforts to build a global exploration portfolio. •

NEWS - ASIA PACIFIC

AGR Software Solutions Builds on PETRONAS’ Success Global oil and gas service company, AGR, has been awarded a software contract with Malaysian oil and gas company, PETRONAS Carigali Sdn Bhd (PCSB).

Valued at over 1MUSD, the contract signals a three year partnership with an option to extend for a further two years between AGR SS and the government-owned corporation; a long-standing client of AGR’s.

This latest agreement will see AGR provide two products from its software portfolio, including P1™ and CT™, as well as the full training for PCSB’s personnel in their use.

Ezra to Create One of Asia Pacific’s Largest Offshore Services Players With Consolidation of EMAS Marine Into EOC Ezra Holdings Limited today, announces plans to consolidate its Offshore Support Services division, EMAS Marine, into its associated company, EOC Limited (“EOC”), which is listed on the Oslo Børs, Norway.

Upon completion of the transaction, the enlarged EOC Group will be one of the largest offshore support operators in Asia Pacific by asset value, managing an offshore services platform comprising over US$1 billion in offshore support assets. Its diverse and versatile fleet of 50 offshore vessels is among the youngest in the region. The fleet has a combined bollard pull of almost 4,000 tons, more than 37,000 dead weight tonnes (dwt) and a total of almost 350,000 BHP, making it one of the strongest and most powerful in the region, with capabilities to operate globally at ultra-deep water depths.

The first of the software products to be delivered, P1™, is a marketleading probabilistic planning tool for estimating time and cost of well operations. Meanwhile, CT™ will act as a real-time cost tracker enabling operational managers to accurately track the financial status of their projects.

“By bringing together EMAS Marine and EOC, Ezra has created an offshore solutions provider in the region that is ahead of its peers in terms of fleet capabilities,” said Mr Lionel Lee, Ezra’s Group CEO and Managing Director.

Petter Mathisen, Vice President of Software Solutions at AGR, commented: “PETRONAS Carigali is a long-standing client of AGR and we have developed an excellent relationship over the years. This contract win is testament to that and, indeed, the capabilities of our software products.

“This move allows us to capitalise on investors’ growing interest for exposure in the different segments of the offshore oil and gas sector, and at the same time, meet increasing demand for newer offshore support vessels (OSVs) with large deck areas, accommodation capacity, bollard pull, and dynamic positioning capabilities among our clients.

“We pride ourselves on the fact that these solutions are tried, tested and trusted, providing real and trusted results for our clients. As operators increasingly search for more efficient and safer operations, our software solutions can effectively cut total drilling costs by four per cent.”

Mr Lee Kian Soo, Ezra’s Group Founder, Non-Executive and NonIndependent Director, said: “This is a significant milestone for us.

When we started in 1992, we were a simple ship operator. Seven years later, we obtained our first vessel.

Based on experience gathered from over 500 drilling projects managed in all possible environments globally, clients look to these tools for risk mitigation and cost efficiency, resulting in the saving of millions of dollars.

AGR’s software portfolio is supported by technical specialists across the business’ international network, with regional hubs in Europe, Norway, the Americas, the Middle East and Asia Pacific. •

Today, I am pleased to present to the market this new platform which manages 50 vessels. Through the years, we have gained international recognition for our strong execution capabilities and operational flexibility. I believe that with our enlarged platform, we can capture a greater market share and serve our clients better.”

The enlarged EOC fleet boasts modern and technologically advanced vessels with strong deepwater capabilities to meet growing demand arising from increased offshore oil and gas exploration and production activities globally. It will leverage EMAS Marine’s extensive execution capabilities and established track record in asset management to strengthen its position as a leading offshore solution provider, offering a suite of offshore support services, including, OSVs, accommodation, construction, and resource management.

With a highly experienced and committed independent management team helming the enlarged EOC Group, Ezra’s management will also be able to focus on developing the fast-growing Subsea Services business, which has become the Group’s main revenue generator. The proposed consolidation Ezra and EOC have agreed on a consideration of US$520 million, comprising US$150 million in cash and US$370 million by the issuance of approximately 280.1 million new EOC shares to Ezra based on the issue price of NOK 8.18 per new share.

The consideration was arrived at on a willing-buyer, willing-seller basis and takes into account, among others, the track record and market position of EMAS Marine and business rationale for the enlarged entity. In EOC’s announcement, Fearnley Securities AS, the independent financial adviser to the board of directors of EOC, has rendered a preliminary conditional opinion that the terms of the proposed consolidation are fair to the EOC shareholders. •

NEWS - NORTH AMERICA

BC Ferries awards $165 million in contracts for three new Liquefied Natural Gas fuelled intermediate class ferries Following the completion of an extensive competitive bidding process, BC Ferries has awarded Remontowa Shipbuilding S.A. of Gdansk, Poland contracts totaling $165 million to build three new intermediate class vessels.

The contracts have been approved by BC Ferries’ Board of Directors, as well as a total project budget of $252 million that includes financing and project management costs that would have been incurred regardless of where the vessels were built. The budget also includes $51 million for Canadian taxes and federal import duties. The total project budget is within the capital envelope set by the BC Ferries Commissioner.

“These are design-build, fixed-price contracts that provide BC Ferries with substantial guarantees related to delivery dates, performance criteria, cost certainty and quality construction,” said Mark Wilson, BC Ferries’ Vice President of Engineering.

“As we begin the next phase of our newbuild program, a key objective is to achieve capital and operating cost savings and efficiencies through an overall class and standardization strategy,” said Wilson.

“Standardization offers greater interoperability and lower crew training and maintenance costs, and also enhances safety. This is a significant step forward in taking BC Ferries from 17 classes of ships to five classes.”

The new intermediate class vessels will be the first vessels in BC Ferries’ fleet to operate as dual-fuel capable using Liquefied Natural Gas (LNG) or diesel fuel for propulsion and power generation. “This is an exciting initiative for BC Ferries that can reduce upward pressure on fares due to lower fuel costs for LNG, and reduce the environmental emissions substantially since LNG is a cleaner and greener fuel compared to current alternatives,” said Wilson.

Two of the new ships will replace the 49-year old Queen of Burnaby, which sails between Comox and Powell River and the 50-year old Queen of Nanaimo, which services the Tsawwassen - Southern Gulf Islands route. The third vessel will augment peak and shoulder season service on the Southern Gulf Islands route, plus provide refit relief around the fleet. These new 105 metre vessels will accommodate 145 vehicles and 600 passengers.

The first new intermediate class vessel is scheduled to arrive in British Columbia in August 2016, the second in October 2016 and the third in February 2017. Remontowa is responsible for delivering the vessels to Victoria. The first vessel is expected to be in service in the fall of 2016, following extensive crew training and familiarization.

The Gdansk ship repair and shipbuilding yard Remontowa Shipbuilding S.A , which is one of the world’s leading shipyards with state-of-the-art design and production facilities, is a member of the Remontowa Holding capital group specializing in ship design and construction of new ships, conversions and repairs, offshore units and steel structures. The shipyard was established in 1952 and privatized in 2001.

BC Ferries conducted an extensive competitive bidding process to ensure that the company secured the best bid for its customers and

the taxpayers of British Columbia. One shipyard from BC, Seaspan’s Vancouver Shipyard, was among the five shipyards shortlisted and invited to participate in the RFP process, however they decided to withdraw as they indicated they have maximized their available capacity due to commitments with the federal government building vessels under the National Shipbuilding and Procurement Strategy as well as constructing BC Ferries’ new cable ferry.

Criteria for shipyard selection included the design and construction plan, recent experience building intermediate ferries, capability of introducing new technology such as LNG, customer satisfaction (references from other customers), delivery schedule, price and payment terms, financial stability and ability to provide guarantees.

Under contract to the Province of British Columbia, BC Ferries is the service provider responsible for the delivery of safe, efficient and dependable ferry service along coastal British Columbia. •

NEWS - NORTH AMERICA

AGR Software Solutions Builds on PETRONAS’ Success

Univar Inc., a leading global chemical distributor of industrial and specialty chemicals and related chemistry services, held a grand opening ceremony on June 30 for a new, permanent facility in Dickinson, N.D., to support its oil and gas business in the Williston Basin. The ribbon cutting ceremony at the new facility featured remarks by U.S. Senator Heidi Heitkamp, Univar’s President of Oil & Gas and Mining, Chris Oversby, and Dickinson City Commissioner Carson Steiner.

Univar’s new 5-acre facility features two warehouses, one 15,000 square-foot facility for general storage and a second, 3,000 squarefoot warehouse rated for indoor flammable storage. The facility also includes a truck base and a tank farm. This is Univar’s second facility in the Williston Basin. The first, in Williston, was opened in 2011 to serve the north side of the Basin.

“We are thrilled to be opening our second permanent facility in the

area,” said Chris Oversby, Univar’s President of Global Oil & Gas and Mining. “We look forward to bringing new capabilities to our customers in this region, providing technical support and efficiencies directly to the wellsites.”

The Bakken shale formation is characterized by remote wellsites and harsh environments, creating serious infrastructure and delivery challenges for the standard chemical distribution model. Univar has already addressed a number of these challenges with transload and mobile ISO tank offerings. The permanent facility significantly increases Univar’s footprint and capabilities in the region enabling the company to deliver essential chemistries to wellsites on time. The opening of the Dickinson facility brings the total number of Univar’s dedicated oil, gas and mining facilities in the United States to 25. •

Hawkwood Energy acquires assets in East Texas Hawkwood Energy LLC (“Hawkwood”), an independent upstream oil and gas company, today announced the acquisition of producing and non-producing assets in Brazos, Leon, Madison, and Robertson counties, Texas. These assets establish the company as a significant player in the emerging Eagle Ford and Woodbine plays in East Texas.

Hawkwood’s entry into the area is the result of two separate transactions: the purchase of Crimson Energy Partners III’s assets located mostly in Brazos County and the purchase of certain Encana Oil and Gas (USA), Inc. assets located mostly in Robertson County.

The combined transactions include approximately 1,800 barrels of oil per day of current production and more than 50,000 generally contiguous net undeveloped acres.

“We are excited about the growing unconventional activity in the Eagle Ford and Woodbine, as well as the other long term multi-pay opportunities the area has to offer,” said Patrick Oenbring, Chief Executive Officer, Hawkwood Energy. “Hawkwood intends to invest significant capital and resources into the area to create substantial value for its investors. As an operator, we are also committed to having a positive impact on the communities where we work, including taking an uncompromising approach to safety and environmental-related issues.”

Hawkwood Energy is a Denver-based independent upstream oil and gas company. Hawkwood commenced operations in 2012 with a lineof-equity commitment of $315 million from lead investors Warburg Pincus and Ontario Teachers’ Pension Plan. Hawkwood’s strategy is to leverage its strong technical, operational, and financial capabilities to drive significant production growth from its onshore assets. To date, Hawkwood has grown to 20 employees and currently is actively operating and investing in the Alliance Basin of Nebraska as well as in East Texas. The firm is led by industry veterans Chief Executive Officer, Patrick Oenbring, and Chief Operating Officer, Leonard Gurule.

Matthew O’Neill has joined Hawkwood Energy serving as the company’s Chief Financial Officer. Mr. O’Neill brings over 17 years of financial and leadership experience to Hawkwood. He has worked both domestically and internationally and his experience includes managing and implementing corporate planning, budgeting, taxes, and capital markets activities. In 2009, CFO Magazine recognized Mr. O’Neill as “2009 Young Financial Manager of the Year.” He holds a Bachelor of Commerce from the University of Melbourne and is a Australian Chartered Accountant.•

NEWS - EUROPE

Gazprom Neft, SIBUR and Titan Group Establish a Joint Venture Based on Poliom Plant in Omsk Gazprom Neft, SIBUR and Titan Group signed an agreement to establish a joint venture based on Omsk Polypropylene Plant (Poliom).

As part of the deal, Sibgazpolimer, a joint venture of SIBUR and Gazprom Neft (each having a 50% stake), acquired a 50% stake in Poliom from Titan Group.

Under the agreement, Gazprom Neft is to supply Poliom with raw materials (propane-propylene fraction from Omsk Refinery), with SIBUR to sell Poliom’s products through its distribution network.

This partnership will help enhance the efficiency across the entire production chain, from feedstock delivery to sales.

Poliom’s Board of Directors is to consist of an equal number of representatives of Titan Group and Sibgazpolimer, with the plant’s operations handled by CEO. Currently, this position is held by Oleg Moloshtanov.

“The acquisition of Poliom’s stake by Gazprom Neft will provide the plant with smooth feedstock supplies to manufacture high-quality petrochemicals, improve our refining efficiency and add value across all production stages,” said Anatoly Cherner, deputy CEO for logistics, processing and sales at Gazprom Neft.

“We are convinced that SIBUR’s competencies in polypropylene production and solid understanding of the Russian polymer market will contribute to enhancing Poliom’s operational excellence and performance,” Dmitry Konov, SIBUR’s CEO, said.

“Cutting-edge production facilities with a high level of environmental protection, advanced technologies, and highly qualified personnel enabled Omsk Polypropylene Plant to become a market leader within the very first year of operations. I believe that the majors’ engagement in the project will help increase investor appeal of the Omsk Region and boost SME development, marking the growing point of various industrial sectors in Russia,” said Mikhail Sutyaginsky, Chairman of the Board of Directors at Titan Group.•

Danny Alexander to Speak at Oil & Gas UK Annual Conference Oil & Gas UK is delighted to announce today that the Rt. Hon. Danny Alexander MP, Chief Secretary to the Treasury and Member of Parliament for Inverness, Nairn, Badenoch and Strathspey, will speak on the second day of the trade association’s first Annual Conference on ‘Strength, stability, innovation: the future of oil and gas in the UK’.

The conference, taking place on June 11-12 at the Aberdeen Exhibition and Conference Centre, will also feature First Minister, Alex Salmond MSP and Sir Ian Wood alongside a number of industry experts. Chief Secretary to the Treasury, Danny Alexander, commented: “The North Sea oil and gas industry is a key part of the British economy.

This conference is an opportunity to reflect on its successes and the contribution it makes not just in Aberdeen, but across Scotland and the rest of the UK. The government is determined to support the industry as it seeks to overcome new challenges in exploration and maximise economic production in the future. That is why we announced a package of measures at Budget designed to encourage investment and why we have just started talks with the industry to review how the UK’s tax system works for oil and gas. This industry, like the rest of the Scottish economy, is better off as part of a strong, stable and growing UK economy.”

Oil & Gas UK has previously warmly welcomed the UK Government’s support for the recommendations of the Wood Report and the review of the industry’s tax regime, announced by the Chancellor in the Budget on 19 March 2014, to address the challenges and opportunities faced by the mature North Sea. Namely, the consultation on a new allowance to encourage much needed investment in ultra-high pressure high temperature (u-HPHT) oil and gas field clusters.

Following the publication of the Wood Review earlier this year, the conference falls under the umbrella of MER UK (Maximising Economic Recovery UK) and conference streams will take a thematic approach, striving to answer the question: How can we develop a sustainable future for the UK oil and gas industry?

Oil & Gas UK CEO Malcolm Webb welcomed the conference, hoping it would enable collaboration in the industry at a time when the industry is facing its biggest exploration challenge in 50 years: “I’m delighted to announce that Danny Alexander will be joining our line-up of illustrious speakers at this conference. A real sign of this government’s continuing support for the industry’s ongoing success.

Our recently commissioned report into the thriving UK offshore oil and gas supply chain demonstrated that companies are winning contracts across the country – from south of Portsmouth to the north of Inverness. It remains vital both the UK and Scottish Governments continue to work together in order to maximise the economic activity of the oil and gas industry - for the benefit of all involved.”

The conference will break into parallel streams over the two days, allowing delegates to create their own personal conference agenda.

These streams will allow the exchange of ideas and also to provoke debate on the important issues of the day, be they technical, operational or corporate.•

10 • Oil and Gas Innovation

GROWTH IN THE EVENT: The Tank World show grew from an executive congress of 260 people in 2013 to a show of 1670 in 2014.

3000 2500

GROWTH IN OUR COMMUNITY: Our news portal, Linkedin group and social media following now has 8000 subscribers. In 2013 it had 400

400

8000

in 2013

2000

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Tank World increases YOY by

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Visit us now as www.tankworldexpo.com Get the latest news at www.tankworldnews.com Get in touch today: tim.edwards@tankstorageforum.com

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MARKET POTENTIAL: The Middle East share of global oil trade is higher than any other region at 36% Value of pipeline contracts increased to £32,000 million in 2013 The value of projects across the Middle East region is in excess of £100 billion Capacity at Fujairah Port is expected to rise to 10.6 billion tonnes by the end of the year SUPPORTERS INCLUDE:

Tank World Media Partners:

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NEWS - EUROPE

Sembcorp Marine’s Jurong Shipyard Secures a US$236 Million Contract to Build a JackUp Rig for Hercules North Sea Ltd Sembcorp Marine’s subsidiary Jurong Shipyard has secured a US$236 million (about S$296 million) contract to build a high specification, tailor-made jack-up rig for new customer Hercules North Sea Ltd.

Noble Energy Announces Termination of Leviathan MoU with Woodside Noble Energy, Inc. today announced that the parties have agreed to terminate the non-binding memorandum of understanding regarding the sale of interest in the Leviathan licenses, offshore Israel, to Woodside Petroleum.

Following termination of the agreement, working interests in the Leviathan Project remain as follows: Noble Energy as operator (39.66 percent), Delek Drilling (22.67 percent), Avner Oil Exploration (22.67 percent), and Ratio Oil Exploration (15 percent).

Charles D. Davidson, Noble Energy’s Chairman and CEO, commented, “The plans for development of the Leviathan discovery have significantly changed since we began the search for a partner approximately two years ago. Perhaps the most dramatic changes have been associated with the growth in the regional markets. The emergence of these regional markets, which are accessible through pipeline outlet, has pushed the need for LNG into a later phase of development versus our earlier plans. While we have not been able to reach a mutually acceptable agreement with Woodside, we continue to move forward with our partners and the Israel government with plans to develop this world-class asset for the benefit of all stakeholders.”

Significant progress has been made on the development of the Leviathan field, following approval of Israel’s natural gas export policy, an agreement with Israel’s Anti-trust Authority, and receipt of the Development and Production Leases for Leviathan. Noble Energy is targeting to sanction the initial phase of development at Leviathan by the end of 2014, with first production from the field currently planned for late 2017.

The initial development phase is planned to be a 1.6 billion cubic feet per day floating, production, storage and offloading (FPSO) system, to provide natural gas into Israel and surrounding regional markets.

Front-end engineering and design studies are ongoing for the second phase of development at Leviathan, which is anticipated to be a floating, liquefied natural gas (FLNG) production system.

The Leviathan Project is located offshore Israel in approximately 5,550 feet of water. It has an estimated 19 trillion cubic feet of discovered natural gas resources.

Noble Energy is a leading independent energy company engaged in worldwide oil and gas exploration and production. The Company has core operations onshore in the U.S., primarily in the DJ Basin and Marcellus Shale, in the deepwater Gulf of Mexico, offshore Eastern Mediterranean, and offshore West Africa. Noble Energy is listed on the New York Stock Exchange and is traded under the ticker symbol NBL. •

Scheduled for delivery in the second quarter of 2016, the jack-up rig will be built based on the Friede & Goldman JU 2000E design which has enhanced features suitable for UK operations. The new rig is designed to operate in waters of 400 feet and drill to depths of 30,000 feet. The rig will be equipped with 2,000,000 lbs drilling capacity, 6,000 barrels mud capacity, 28,000 kips preload capacity for the legs and 150man accommodation capacity. Upon delivery, the rig will be chartered out to Maersk Oil and Gas for deployment in the UK sector of the North Sea. Hercules North Sea Ltd is a subsidiary of Nasdaq-listed Hercules Offshore, Inc. (ticker: HERO), a global leader in jack-up drilling and liftboat services with a fleet of 36 jack-up rigs and 24 liftboats.

Mr. William Gu, Jurong Shipyard’s General Manager of Offshore Division, said: “We are honoured to work with Hercules Offshore and we would like to congratulate Hercules Offshore in clinching the contract from Maersk Oil and Gas. This reaffirms Jurong Shipyard’s position as a customer-oriented yard in providing tailor-made rig designs and solutions for our customers.”

Mr. John T. Rynd, Chief Executive Officer and President of Hercules Offshore, said: “We are pleased to partner with Jurong Shipyard as we believe in Jurong Shipyard’s strong track record in delivering quality rigs customised for our clients. We look forward to our new friendship with Jurong Shipyard and a robust future partnership.”

This latest contract brings Sembcorp Marine’s total new orders secured in 2014 to-date to S$1.93 billion. Including this new contract, the Group’s net order book stands at S$13.2 billion, with deliveries extending into 2019.

The contract is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of Sembcorp Marine for the year ending December 31, 2014.

About Hercules Offshore Hercules Offshore is a leading global provider of offshore contract drilling and liftboat services, with operations in most of the major shallow water hydrocarbon producing provinces in the world. The group owns and operates one of the largest jack-up rig and lift-boat fleets worldwide. The group’s diverse and unique fleet is capable of providing services such as oil and gas exploration and development drilling, well service, platform inspection, maintenance and decommissioning operations in shallow water markets. Headquartered in Houston, Hercules Offshore is an ISO 9001:2008 and ISO 14001:2004 certified corporation.

About Sembcorp Marine Sembcorp Marine is a leading global marine and offshore engineering group with over 50 years of experience and proven capabilities in repair, specialised shipbuilding, building of high-specification jack-up rigs, fast-track construction of ultra-deepwater semi-submersible rigs, conversion of floating production and storage facilities as well as the engineering and construction of offshore platforms. •

13 • Oil and Gas Innovation

SPECIAL: IRAQ

The Situation In Iraq. What Does it Mean for the Oil Industry? OGI Investigates.

The potential break up of Iraq, a country with the fifth largest proven oil reserves in the world is looming. Additionally, most of the data on the proven reserves was done back in 2001 with 2D seismic data, meaning International geologists and consultants have estimated that unexplored territory may contain vastly larger reserves. Iraq or whatever states it eventually splinters into obviously has massive national, regional and global security concerns attached to it. But it’s not just the political realm which is severely affected by the situation on the ground there. The global economy is also tied into many of the situations that are playing out in Iraq and Syria. What does this mean for oil prices, oil security, and the regions Oil and Gas Sector? Oil and Gas Innovation’s Mylene Daugan investigates.

Iraqi Total Oil Production (2000-2013) at Thousands of Barrels Per Day

3500

2013

By Mylene Daugan

For those who have kept a close eye on Iraq over the past two decades may be surprised to know that after the US intervention in Iraq to remove Saddam Hussein, oil production actually shot up to some of its highest levels historically. Production suffered during the Iran / Iraq War of the 1980’s, followed by a subsequent United Nations intervention to drive Saddam Hussein’s army back from neighbouring Kuwait, and finally culminating in crippling US sanctions for Iraq’s weapons programs. After the fall of Saddam and the end of the Baath era, production clearly started to rise, (See chart).

The removal of sanctions on 24 May 2003 and rising oil prices in the mid-to-late 2000s led to a doubling in oil production from a low of 1.3 mbpd during the turbulence of 2003 to a high of 2.6 mbpd in 2011. Furthermore, reduced inflation and violence since 2007 have translated to real increases in living standards for Iraqis.

2000

2003

500

Statistics courtesy of the US Energy Information Agency

One of the key economic challenges was Iraq’s immense foreign debt, estimated at $125 billion. Although some of this debt was derived from normal export contracts that Iraq had failed to pay for, some was a result of military and financial support during Iraq’s war with Iran.

The Jubilee Iraq campaign argued that much of these debts were odious (illegitimate).

However, as the concept of odious debt is not accepted, trying to deal with the debt on those terms would have embroiled Iraq in legal disputes for years. Iraq decided to deal with its debt more pragmatically and approached the Paris Club of official creditors.

In a December 2006 Newsweek International article, a study by Global Insight in London was reported to show “that Civil war or not, Iraq has an economy, and, mother of all surprises, it’s doing remarkably well. Real estate was booming. Construction, retail and wholesale trade sectors were healthy, too, according to the report. The U.S. Chamber of Commerce reported 34,000 registered companies in Iraq, up from 8,000 three years before. Sales of second-hand cars, televisions and mobile phones had all risen sharply.

Estimates vary, but one from Global Insight puts GDP growth at 17 percent in 2005 and projected 13 percent for future years. The World Bank had it lower: at 4 percent this year. But, given all the attention paid to deteriorating security at the time, the startling fact is that Iraq was growing at all.”

seems only a matter of time until the country splinters along ethnic and religious lines into three different states.

Fast forward to 2014 and we have ourselves a very different situation. While, there may be still be pockets of growth in some areas, the Kurdish held North springs to mind, the political and security situation has completely fallen apart. Iraq is now a failed state, and it

On the 10th of June this year the Islamic State of Iraq and the Levant (ISIS), a quasistate / terrorist organisation that grew out of Al Qaeda attacked and took over Iraq’s second city, Mosul. ISIS has recently changed its brand to just the Islamic State, claiming the areas it controls in north and western Iraq and Eastern Syria to be a new Islamic Caliphate harking back to Islam’s glory days in the medieval days. The seizure of Iraq’s second largest city and the subsequent lighting fast advance towards Baghdad shocked the world.

Many experts agree there are three main reasons for these happenings.

1.

2.

The complete US military withdrawal under the Obama administration left a security vacuum which The very polarizing Al Maliki (Iraq’s Prime Minister) sectarian policies which alienated

3.

the Sunni Population only exacerbated the Arab Spring which essentially started as a peaceful protest in Syria in 2011 but quickly escalated into an armed revolt against a horrific campaign against the civilian population by the Assad Regime.

This perfect storm let an all but defeated (or tactically quiet– depending on whom you agree with) Al Qaeda in Iraq to rearm, retrain and eventually resurface in the Syrian civil war theatre. It’s there where they became very strong and eventually the conflict spilled over the Iraq border which is all too apparent now.

It’s worth noting that the very border between Iraq and Syria, (the Sykes-Picot Agreement) is now basically void.

So where are we now?

Iraq’s splintering factions are all in oil rich areas. The Peshmerga Militia, which is the official vanguard of the Kurdish minority in

northern Iraq, has taken over the key oil city of Kirkuk and it fighting to keep Irbil against ISIS. The Kurds are quite pro West and keen to begin working with the Americans as soon as possible. Fouad Hussein, chief of staff to the Kurdish president Massoud Barzani, told reporters earlier in July that that an independent Kurdistan will soon exist as a self-sufficient country or within a confederation with Baghdad, but that given the sectarian political divisions there as well as the recent incursion of the Sunni militant group ISIS, “Iraq” as a unified country exists in name only.

“If we can stay together it must be on the basis of the new reality. And new reality has to do with the fact that Kurdistan is now independent,” Hussein said, briefing reporters at the Kurdish Regional Government’s DC offices. He relayed that Kurdistan is an Oasis in the otherwise bleak landscape that is Iraq at the moment. “If they can further work together as two confederations, under the name of one country, that can be possible,” he said. “But if we cannot reach that understanding with them, then why we must go back to a failed state?”

The reality is, is that no matter what happens to Iraq and Syria going forward, the countries (especially Iraq) still sit on some of the most vast and lucrative oilfields in the World. And any state(s) emerging from the crisis will have to keep production up to pre ISIS levels to keep the country from falling deeper into poverty and unrest.

Traditionally Oil commodities are always pegged to international issues. the main reason why is of course is so much of the supply is coming from areas with political strife. Whether we’re talking about the conflict between Russia and the Ukraine, Israel’s crisis with Hamas, or the subject here, the attempt

by ISIS to create an international caliphate.

But while this may make many investors around the world a bit nervous, don’t think for a second that the oil sales will stop flowing from the Sunni Arab areas of Iraq. The fact remains ISIS needs the oil sales to fund its

operations.

“ISIS militants are selling the oil to anyone who is interested,” said the governor of the northern Iraqi town of Tuz Khormato, speaking with Turkish news agency Anadolu.

“They need the money for weapons and ammunition.”

In May, the International Energy Agency listed Iraq as one of the most important future oil exporters. By 2035, the agency said it expected an annual output of 9 million barrels from Iraq, nearly three times the currently extracted 3.3 million barrels, turning the country into an even greater oil exporter than Saudi Arabia. But there are big IF’s in that forecast as many of the increase in production would hinder on foreign investment.

We have seen in places like Nigeria that terrorist insurgencies can scare away foreign investment, with even some of the majors who have been operating in the areas for decades not willing to put their employees in any significant risk. ISIS is starting to look like they are gaining a firm grip on the territory they control and are traditionally hostile to any non-Islamic and western interests in there self-proclaimed caliphate. • Mylene Daugan, the KRG & and the IEA contributed to this report.

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Market Reporting

Petroleum illuminating the markets

Consulting Events

SPECIAL: SKILL SHORTAGES

Oil & Gas Apprenticeship marks 15th Anniversary Milestone The oil and gas industry is marking Scottish Apprenticeship Week by celebrating the 15th anniversary of one of the most successful youth training schemes in the country. Past and present apprentices in Aberdeen, Edinburgh and Falkirk will join forces today (May 19th) as the industry’s official technician training scheme reaches the significant milestone in its history.

Managed by OPITO, the skills organisation for oil and gas, operators and major contractors have invested more than £120million into the programme since it was established. Now backed by more than 15 companies it is one of the biggest industry-led MA programmes of its kind in the UK. Around 100 trainee positions are available annually on the UK Upstream Oil and Gas Industry Technician Training scheme which boasts one of the highest achievement rates at 93%, compared to the national average of around 65%.

Sinéad Watson, a global HSE performance analyst with TAQA, was aged 18 and the only female on the very first intake of apprentices in 1999. Today she met with youngsters on the current programme as they underwent their training at ASET in Aberdeen.

“I didn’t know much about working offshore when I was at school – at that time careers advisers never pushed the oil and gas industry and I had no idea what it entailed,” she said.

“For some people university is the way to go, but doing the modern apprenticeship let me see the end game all the way. There’s no right or wrong way to get into the industry, but this opportunity gave me the on-the-job experience I needed and I learned from the best.

“Once you are on the scheme you’re not competing to get a job, it’s all part of your training. After four years I had the skills and knowledge I needed to stand on my own two feet and I was able progress up the ranks.

“Fifteen years on there is a much greater push for young people to join oil and gas and OPITO is attracting brighter talents every year. OPITO shows that it’s not just traditional apprenticeships on offer out there – this particular one can take you almost anywhere in the world and there are plenty of routes you can end up taking.”

scheme. After two years studying the electrical engineering course, he is due to complete his two years’ on-the-job training with Apache later this month.

“Working in oil and gas is even better than I thought it would be. I like being able to come home at the end of a two weeks shift and knowing I’ve achieved a lot in the time I’ve been away,” he said.

“I wouldn’t be where I am now without the apprenticeship. I’m about to enter an industry where I know what I’m doing and have had the right training to be able to stand on my own two feet.

“An apprenticeship gives you a foot in the door in a competitive industry and helps you meet the right people. I can’t think of any better way to get ahead.”

Managed by OPITO, the skills organisation for oil and gas, in partnership with the Engineering Construction Industry Training Board (ECITB), more than 1,400 young people have entered the industry since the scheme’s formation, creating a grassroots solution to the industry-wide skills shortage.

“For some people university is the way to go, but doing the modern apprenticeship let me see the end game all the way. There’s no right or wrong way to get into the industry, but this opportunity gave me the on-the-job experience I needed and I learned from the best.

Owen Buchan was just 16-years-old when he was accepted onto the apprenticeship 18 • Oil and Gas Innovation

John McDonald, UK managing director of OPITO, said: “Apprenticeship programmes are an excellent example of how an industry can pro actively tackle its skills issues. Oil and gas is the UK’s largest industrial investor, contributing billions to the economy and employing more than 440,000 people. The recruitment and training of technicians is critical to developing and retaining the workforce we need to continue to take on the world’s toughest energy challenges.

“We receive thousands of applications annually from young people keen to be part of the industry journey. The qualifications they gain are recognised internationally so the apprentices have the skills required to work anywhere in the world and, as such, are highly sought after by employers.

“This year, as we celebrate the 15th anniversary, it is fantastic to look back at what has been achieved to date and how the programme has grown into one of the most successful in the UK.” OPITO’s apprenticeship scheme offers a range of disciplines including process operations, electrical, instrument and control maintenance.

Split into two phases, the programme sees students take part in a 21 month full time course at one of the industry-appointed colleges in Aberdeen, Forth Valley or Edinburgh, before embarking on a two year work-site placement.

“As the skills organisation for oil and gas, we are keen to ensure that future generations of workers are aware of the opportunities in the sector and we believe that it is critical that industry plays a role in maintaining students’ levels of interest in the sector from a young age,” added Mr McDonald.

“We’re running a raft of initiatives that are geared to attracting the future oil and gas workforce, including working with schools and encourage the uptake of science, technology, engineering and maths subjects, so school leavers are equipped with the basic skills required to enter the industry.” •

MASTERS IN OIL AND GAS ENGINEERING SmartCity Malta, a vibrant international business community that’s all about talented people coming to make things happen, while experiencing the best of everything the global community has to offer. Internationally renowned education. Innovative businesses that speak to the world. Cutting edge technology, gastronomic brilliance, shopping, tourism, fashion – you name it, it’s all happening at SmartCity Malta.

I / my company has a specific training need not currently offered.

Can GCM help?

Yes. With unmatched in-house expertise and direct connectivity with industry, if you need training related to any oil and gas related field, GCM has an expert with the course for you.

Please call: (+356) 2180 1252 and ask for Benjamin Blech or e-mail: oil.gas@gcmalta.com

ENQUIRE TODAY Global College Malta Tel.: +356 21801252 enquiries@gcmalta.com, www.gcmalta.com SmartCity Malta, SCM01, Ricasoli

SPECIAL: SKILL SHORTAGES

Could a Historic Mediterranean Island Offer Lasting Solutions to Industry Skills Shortages?

Visionary, well connected and open to the world, Malta offers unmissable education and recruitment opportunities for individuals and organisations alike. The demands on oil and gas sector professionals are changing like never before. In an industry that’s about pushing boundaries and being at the forefront of innovation, no matter what your role, the long list of skills required to keep the world moving never stops growing.

Truly open to the world, Malta is dynamic yet secure.

With many experts in their field reaching retirement age and a shortage of qualified people to replace them, demand for new talent is only going one way. To meet that demand, a team of leading industry experts from around the world have come up with a plan. Outsource training to Malta - a strategically located ‘centre of excellence’ at the gateway to Europe, North Africa and the Middle East, specifically designed to serve the training and recruitment needs of the oil and gas sector.

One of the best things about working oil and gas is that you’re part of a sector where market demand and competition is the only limit to the potential rewards. For now at least, the fierce competition for talent between major industry players grinds on, so much so that companies are slowly but surely moving away from ‘traditional’ recruitment strategies.

Many employers no longer wait for you to switch on your computer, type in the relevant address, navigate to the relevant website and submit an application for vetting, only to

discover that you signed elsewhere.

Increasingly, it’s companies doing the searching through direct connectivity with the world’s leading oil and gas training providers.

All this is happening primarily in a handful of centrally located ‘one stop’ recruitment shops, a compelling international race in which Malta is determined to command a key position.

While much of Europe languished in economic ruin post-2008, the bright lights and optimism that characterised Malta joining the EU has largely continued; the small yet prosperous Mediterranean islands, determined to make their mark on the world.

The potential discovery of oil reserves off the Maltese coast has also drawn in prospectors from across the world, the true commercial promise of which is only now being fully

degree qualification – one of the most highly valued among oil and gas sector employers across the world.

MSc Oil and Gas Engineering Effectively a ‘conversion course’ and is for those with an engineering background looking to break into the industry for the first time, or for those looking to take their oil and gas career to the next level. The programme focuses primarily on skills essential to maximising economic recovery and guaranteeing production.

MSc Drilling and Well Engineering Covers a range of skills that are in short supply and is for established industry professionals looking to develop specialist expertise in well

“Since Global College Malta works closely with British universities and staff, students are ensured a well-rounded perspective and education.

Global College Malta in partnership with Robert Gordon University, Aberdeen is offering three oil & gas related engineering courses, commencing September 2014.” assessed.

As regional relations improve and a fresh round of prospecting gets under way, the government has promised every possible assistance to talented people coming to Malta to teach, learn and become tomorrow’s industry pioneers.

Arguably one of Europe’s fastest growing providers of oil and gas training and recruitment solutions, Malta is delivering on its promise - and Global College Malta (GCM) is making a significant contribution.

Drawing on their unmatched connectivity with internationally renowned industry experts from around the world, Global College Malta’s academic year begins with flying in trainers from Robert Gordon University to Malta, to deliver their world-class oil and gas MSc programmes, designed for both established oil and gas professionals and those looking to break into the industry for the first time. Courses are designed to fill key skills shortages, as well as everything they need for a successful career in their chosen field. At the end of their course, students are awarded an RGU master’s

design, drilling and completion.

For more information on Robert Gordon University’s MSc programmes at Global College Malta, please visit: http://www. gcmalta.com/oil-and-gas Again taking advantage of their extensive industry experience and contacts, Global College Malta are also delivering a unique portfolio of specialist oil and gas short courses (typically 3 days), aimed at serving the immediate and long term training needs of the industry. Designed and delivered by leading experts from around the world, all internationally renowned in their field, courses offer organisations and individuals a diverse range of essential skills and professional development opportunities.

Courses address many of the core challenges of 21st century oil and gas, including effective environmental management, safety and best practice, leadership and risk management, as well as strategies for managing personal risk in high risk environments.

To find out more about oil and gas short course at Global College Malta, visit: http://www.gcmalta.com/oil-and-gas-shortcourses Truly open to the world, Malta is dynamic yet secure. Easily accessible from any of the world’s major transport centres.

Picturesque, politically stable, democratic, multicultural and with a relatively low cost of living. Nowhere else offers the same level of opportunity to work with so many internationally renowned experts in such exciting surroundings. •

SPECIAL: SKILL SHORTAGES

Refining the Refiners: Vital Collaboration Between Industry and Training We now turn to petrochemical engineering, where UK universities such as Hull are working to alleviate the skill shortage in the Oil and Gas Industry through collaboration with industry directly. Narrowing down a future career path enough to choose further study can be a daunting prospect.

Like the age-old adage that dictates that you only really start to learn how to drive once you’ve passed your test, there is a sense that arming oneself with a degree is still a world away from putting it to good use.

The Venn Building, University of Hull

22 • Oil and Gas Innovation

Students’ Union Building But with the right course, that risky gap can be much more easily bridged. The key?

The key is finding the course with industry support, contacts and hands-on opportunities allowing students to weave that all-important real-world experience into the paperwork.

Dr Phil Rubini, Programme Leader for Chemical Engineering at the University of Hull, believes this unique combination is what can really make the difference when the graduates move on to the world of work.

“You can do as much learning as you like in a classroom or a lab, but unless you know what to do with those skills in the real world, the attraction factor simply isn’t there for future employers,” he said.

“In the workplace, hands-on experience is the key to opening the right doors. Without it, employers may be reluctant to take a chance on an unproven graduate, however talented they may be – especially when the market is reaching a competitive high.

“But it’s with this knowledge and understanding that we have been able to develop courses at Hull that take students out of the classroom and into a much more valuable learning space – real-life refineries.

“We’re essentially taking our students on a completely different journey to the one their parents or grandparents will have had,” added Dr Rubini.

“We’re giving them opportunities to forge their own contacts and get their hands dirty in a safe environment. In doing so, this sends out a clear message to employers that these engineers can not only find their way around a refinery, but they can also find their way around realworld problems.”

There are two specialised Masters degrees in the study of petroleum, oil and gas currently on offer at the

“There are two specialised Masters degrees in the study of petroleum, oil and gas.. It’s in linking with companies such as BP Chemicals, Cristal and Gassco.”

University of Hull. One focuses on chemical engineering downstream technologies, the other on management, and both benefit from the impressive array of industry contacts dotted around the surrounding area.

The Humber region is home to more than 350 companies involved in the chemical and allied industries and is a world leader in the process industries, including the production of bulk chemicals, fibres, paints and coatings and pharmaceutical ingredients.

These chemical companies produce a wide range of products from agricultural and plastics to cosmetics and pharmaceuticals. Established companies continue to be innovative, highly competitive and to dominate the global market.

Local industry leaders include Phillips66 Oil Refinery, Total Oil Refinery – which between them produce more than a quarter of the UK’s refinery capacity; while Novartis, Croda and pharmaceutical healthcare giants Smith & Nephew and Reckitt Benckiser also call the region ‘home’.

It’s in linking with companies such as BP Chemicals, Cristal and Gassco - all significant supporters of the chemical engineering programme at Hull – that gives Hull chemical engineering graduates the edge.

Humber Chemical Focus, a weighty industrial body in the region, also works closely with those developing the course content - and helps them to deliver it through the Centre for Assessment of Technical Competence (Humber) or CATCH. The £8m centre, located in the shadow of the Philips 66 Humber refinery, provides the opportunity to experience life as a Chemical Engineer, with access to realistic equipment, physical environment and operating procedures.

23 • Oil and Gas Innovation

“[CATCH] is internationally recognised as a best-in-class facility” - Dr. Jim Gilbert

Chemistry Building, University of Hull

Humber Bridge

Run by an experienced team in accordance with best-practice rules and procedures, the site provides full-scale plant and equipment for training and competence assessment at all levels.

Dr Jim Gilbert, deputy head of the school of engineering at the University of Hull, said: “It is internationally recognised as a best-in-class facility, and our students find CATCH to be an exciting and valuable experience. There is nothing like getting that buzz of a real scenario - it’s often what really drives them to excel. Knowing that what they are doing has a real impact is a huge motivator – and the fact that they’re doing what employers want them to have done is just the icing on the cake.”

As well as the specific highlights of the location, students at Hull have plenty more to benefit from.

“The School of Engineering is home to a vibrant community of postgraduate research students, and we are particularly proud 24 • Oil and Gas Innovation

of our international and interdisciplinary research culture,” added Dr Gilbert. “Our programmes are supported by the superb, modern facilities within the school and by staff that are internationally recognised for their research in specialty areas aligned with these programmes.”

Add in a state-of-the-art library which has recently seen a £27.4million redevelopment, and the fact that the city of Hull is gearing up to be the City of Culture 2017, and the attractions of this East Yorkshire city are more than just the industrial skylines and pathways.

Some might even say it’s a place to refine the refiners. • To find out more, find us on the web by going to: http://uniofhull.info/chemengman and http://uniofhull.info/chemengtec

Student optimising operation of a bioethanol pilot plant

Humber Bridge

University of Hull

Be inspired…

A city of culture, industry, and bright futures awaits.

Engineer the best route for your future. Be inspired in Hull.

MSc Petroleum, Oil & Gas: Chemical Engineering Technology MSc Petroleum, Oil & Gas: Chemical Engineering Management Integrates important, current and employer relevant themes and enables students to acquire knowledge and skills across a wide range of appropriate topics for petroleum, oil and gas technology, with an emphasis upon either chemical engineering applications or management.

Typical modules • Industrial Chemistry • Petroleum and Petrochemical Engineering • Energy Technologies • Engineering Management for Process Industries • Process Safety and Control • Process Simulation and Modelling

Go to uniofhull.info/chemengman and uniofhull.info/chemengtec to find out more.

• Qualitative/Quantitative Research in Business and Management • Industrial Management, Research Skills and Project Planning • Sustainable Business: Principles and Practice of Green Management Applicants should have, or expect to obtain, a 2:2 Honours degree (or equivalent) in a chemical engineering or related subject.

SPECIAL: SELECTING THE CORRECT ALTERNATOR

It’s Important for a Company to Assess the Correct Alternator to Suit Working Conditions.

Expert analysis from Genco EEC, who has been manufacturing A.C. generators for over 50 years.

26 • Oil and Gas Innovation

Genco EEC Ltd of Ketton Lincolnshire UK have developed special types of brushless non sparking 4pole 50/60Hz [1500-1800RPM]and 2 pole 50/60 hz [3000-3600RPM ] alternators specifically for use in hazardous environments in mines and oil fields. The machines comply with European and North American specifications for zone 2 EExnA/BIIT3 and ATEX compliance. The power range is 2 to 300Kva 50/ 60Hz single or 3 phase voltages 110/650v which accommodates most electrical loads.

(1) Case Study Example:

All the zone 2 units are totally enclosed intended to be driven by diesel engines or hydraulic motors. They have been designed to be self cooled without the need for separate air or water coolers. Machines up to 40Kva have the external fans shaft driven to EN60034-6, IC41A1A1 and larger alternators up to 300KVA have electrically driven high efficiency fans to IC41A1A6 and comply with electrical equipment enclosures in accordance with IEC60034-15, and NEAMA class1 Div2 with IP54/56/65 protection Being self cooled with sealed for life bearings they are very reliable with minimum maintenance for use in remotest locations.

The non sparking feature has been achieved by careful design of the magnetic flux levels, rotational air gaps and fan clearances with the selection of non sparking materials.

Specification IEC 60034-0 defines the various zones or area of potential explosion risk The machines comply with Zone 2 EExe and EExnA/B. Various working ambient, altitudes and load power factors can be accommodated and Power Correction Coefficients graphs are available which give the degrees of de-rate with increased ambient /Altitude/Power factor .

MARINE CLASSIFICATION Although the alternators work generally on oil rigs and exploration platforms they are not classified with marine society classification such as DNV, ABS, Lloyds etc with surveyed materials but can be de-rated to work at increased ambient [normally 40c] and the windings temperature rise to reduced levels.

Also as in marine alternators the sustained short circuit current can be arranged to provide 3-5 times the full load current for at least 10 seconds for load discrimination. All machines use the most modern materials with class H [125c rise in 40c ambient] but

temperature rises can be arranged to meet class F, B or E temperature rises. *This requirement is not always understood and a brief explanation may be useful to prospective customers.

When an alternator supplies several various types of load as shown in the diagram (2) for a simplified electrical system, each load is protected electrically by a suitably rated MCB to protect it from overload, earth leakage and short circuits, which is achieved by two functions: [a] magnetic[instantaneous over current and [b] thermal [longer term over current ].

If for example the MCB6 [crane] develops perhaps a cable or winding fault to create a short circuit then the MCB6 should trip. But if the alternator is not designed to provide sustained short circuit current then the alternator output voltage and load current decay very quickly usually 0.5/5 cycles and unless the MCB6 does not trip on the magnetic function the breaker remains closed and all the other load connected stop working as there is no power available from the alternator.

This can be very important with some applications such as marine, when one load fault closes down the entire circuit.

Although small, the company is efficient with its factory in Ketton, England.

27 • Oil and Gas Innovation

To overcome this the alternator should be designed to sustain current during a short circuit which is usually designed for a period of 8-10 second which gives sufficient time for the faulty load MCB to operate and disconnect the load ,all the other loads will be able to continue working .

(3) Selection of an Alternator to Suit Working Conditions To correctly select the frame rating and characteristics required for various types of electrical loads involves many factors, but if all the required parameters are considered then this will ensure trouble free operation and the maximum life from the machine.

The following check list covers some of the important factors which should be considered [1]What is the power output Kva Kw, volts, phase, frequency[Hz] speed[ RPM] [2] Maximum working ambient temperature, most specification use as standard 40c Higher ambient will envolve a derating factor which may increase the size of the alternator.

[3] Minimum temperature working ambient .

[4] Humidity [5] Type of environment such as indoor / outdoor presence of water fresh/salty.

[6] The relevant clients specification codes and personal preferences.

[7] Types of electrical loads ie motors, heaters lighting led/filaments /florescent, invertors pf capacitors.

[8] Total kw load and pf, duty cycle of load .

[9] If several electric motors used are they started together or is sequence. What is the method of starting DOL.Star/delta, auto transformer, or soft start.

This can affect the alternator size particularly if the specification requires a limited transient voltage drop whilst the motors are started ..

- Are any motors controlled by thyrister speed control ? This could affect the type of winding [11] What are working temperature of the windings or class of insulation required?

Class H 165 c 125c rise in 40c ambient Class F 140c 100c rise in 40c ambient Gencoeec Ltd alternators are designed for an average life expectancy of 25 Years which is primarily dependant on the winding insulation life, which is based on a 10 hour day working at full load in a 40c ambient either the working day or load is reduced then the life can be expected to be longer, conversely longer working days or greater load will shorten the life.

It is very difficult to calculate the average life

(2) Diagram

Class B 120c 80c rise in 40c ambient [12] What is duty rating required continuous, short time, or standby.

[13] Will the alternator work in explosion gas/dust area, or less hazardous Exn/Exe. [14] Does the customer require the machine to be witness tested or just visual inspection [15]What inspection certificates are required [16]What type of drive is used engine, steam or water turbine, hydraulic or electric motor.

[17] Is there any overspeed requirement [18] Is the machine to be screen protected IP21/23 or totally enclosed IP54/55/56/65.

[19] Is single or twin bearing design preferred?

[20] Are the 3 phase loads balanced ? If unbalanced is there a limit on the output voltage variation.

[21] Is there a limit on the voltage total harmonic diviation?

[22] Is the machine to run in parrell with asimilar machine or with the public supply [23] Is the a requirement for spare parts [24] Are there any additional items required, ie. thermisters PT100, anticondensation heaters [what voltage] [25] Is there a particular paint colour/finish ?

[26] When does the customer require delivery / to what address. *[27]Is load discrimination required ie. maintained short circuit capability.

with the many variable influencing factors as the life is an exponential characteristic. The average life assumes the machine is well regularly maintained, usually in this modern world demands change in many ways and fashions and its quite common for the machine to outlive load application. Many of the influencing factors are pre-determined by the working location, ie ambient temperature, duty cycle ect and the running winding temperature is the customers preference. If the winding temperature is lower than the class I of insulation the insulation employed then the size of the machine will be automatically larger, effecting its efficiency and increasing its life expectancy.

Virtually all modern alternators are brushless and the output voltage is controlled automatically by an electronic unit [AVR] Usually the minimum protection built into the AVR includes: [1] slow speed running protection which is when the prime mover [engine ] is running

below the operating speed [RPM]. Then the output voltage from the alternator is reduced in proportion to the driven speed, so protecting the alternator windings from overheating [2] Overload protection which monitors the exciter excitation power and switches off the excitation /output voltage of the alternator if the load rises to high. The normal MCB /fuse protection should still be used.

From the above list (3) which may not cover all the site and customer requirements it is evident there are many factors important for the correct alternator to be designed and supplied When one looks at the above list, (which may not cover all the site and customer requirements) it is evident there are many factors which are important for the correct alternator to be designed and supplied.

All Genco Ltd machines are individually manufactured which provides the facility to design and manufacture each machines to suit each customers particular requirements.•

CONTACT DETAILS GENCO EEC LTD Tel: + 44 (0) 1780 721 619 Fax: + 44 (0) 1780 721 385 E-mail: generators@gencoeec .co.uk www.gencoeec.co.uk

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E&P

Safe & Secure Lifting is Absolutely Vital in the Offshore Sector Oil and Gas Innovation gets expert analysis from Nautilus Rigging (UK) Ltd who are internationally recognised as the leading innovators in safe lifting solutions as the manufacturers and suppliers of the patented, and international award winning, NautilusTopside Hooks and NautilusROV Hooks safety lifting hooks.

Notable Safety Features

By focusing their design criteria to eliminate industry concerns with respect to the known and inherent hazards of traditional style lifting hooks, the company has developed, and patented, the next generation of lifting hooks that put worker safety and security as first priority.

With proven, and immediate, safety benefits the Nautilus design is now widely accepted by the Offshore sector as the next generation in safety lifting hooks. The innovative Nautilus design incorporates unique patented safety features which confirm Nautilus hooks as the safest lifting hooks available for Subsea, ROV assisted, and Topside lifting operations that benefit users by providing a secure, cost efficient solution to eliminating risk in the workplace.

Nautilus Rigging have a growing customer base which includes Bass Drill, Stenna

Drilling, Subsea7 and Technip. The company has recently added Noble Drilling to their client list having just completed a £150,000 supply contract to provide certified lifting assemblies to the entire Noble fleet of Drilling Rigs following Noble’s, HSE management driven, safety initiative to adopt Nautilus Hooks across the fleet.

Managing Director, Mr Bill Toon says, “Noble Drilling management made the decision to adopt Nautilus Hooks in recognition of the real and tangible safety benefits that our products provide in reducing risks, through this management of change safety initiative Noble Drilling have firmly aligned work practice with the stated objectives of their corporate safety policy to minimize risk in the workplace.” In addition, by adopting Nautilus Hooks, Noble Drilling have also complied with their corporate responsibilities under HSE regulations that require corporation to reduce risk where possible by adopting the appropriate, safer, workplace hardware”.

Nautilus Hooks were awarded the prestigious American Society of Mechanical Engineers Best Mechanical Engineering - Award at the Offshore Technology Conference in Houston where thehooks attributes such as uniqueness, patented design, notable safety features and the global potential to set a new standard for personal safety in lifting operations, were all cited by the judges as the deciding factors in awarding Nautilus Hooks this highest accolade.

30 • Oil and Gas Innovation

Nautilus Rigging has continued this success with their range of Subsea/ROV operated lifting hooks which are proving extremely popular with the major offshore ROV and Subsea contractors who have been quick to recognise the safety benefits and cost effectiveness of the unique “positive locking function” that Nautilus ROV hooks provide.

Mr Toon continues, “Our ROV and Subsea hooks have a patented positive locking mechanism which eliminates the risk of unintentional self release of the load, a known high risk and common hazard associated with the use of traditional snap on style ROV hooks. The positive locking function of the Nautilus Subsea and ROV hooks ensures that load integrity is maintained at all times, providing a cost efficient solution to significantly reducing the risk of operators incurring unwanted, expensive downtime, and/or equipment damage which often results from unintentional load release”.

Nautilus Rigging manufacture and supply 20 different models of the, DNV type approved, Nautilus topside hooks with a range of

of working load limits from 4 to 22 tonnes. The company currently produces 2 models of ROV/Subsea Hooks both with a working load limit of 22 tonnes. All Nautilus Hooks are manufactured to exceed the industry standard BS/EN 1677-1 and have CE certification.

Nautilus Hooks have complete traceability from raw material to finished products and all the hooks are individually numbered and proof tested to 2.5 x their working load limit.

Nautilus Safety Handle

The company has a range of standard certified assemblies, or alternatively they can custom build assemblies to the clients specifications and requirements. All Nautilus lifting hooks and assemblies are supplied complete with manufacturers test certification to meet corporate supply and compliance requirements.

Nautilus ROV hooks incorporate all the innovative safety features of the company’s topside hooks, including the integrated safety handle and dual sided sliding lock mechanism which makes topside handling a simple, safe and secure operation, removing fingers from the hazardous hook/sling interface area and providing an easy one handed operation.

The ROV Hooks are currently available in 2 versions, the Long shank NH-ROV22E and eye top release hook NH-SS22E. The hooks are fitted with a bespoke 316 stainless steel ROV activation wire tested to 1200 kg. •

“Noble Drilling management made the decision to adopt Nautilus Hooks in recognition of the real and tangible safety benefits that our products provide”

A short video detailing the unique operational and safety benefits, and the full product specifications can be viewed at www.nautilusrigging.com Operators can purchase direct from the manufacturers, Nautilus Rigging LLP, by contacting sales@nautilusrigging.com or call on 01224 772323.

31 • Oil and Gas Innovation

E&P

Heerema Chooses Kongsberg Maritime to Supply the World’s Most Advanced Offshore Heavy Lift Crane Simulator Heerema Marine Contractors (HMC) has selected Kongsberg Maritime’s K-Sim Offshore simulation platform to enhance crane operator training and the safe, efficient implementation of heavy lift operations. With the contract signed on May 21st 2014, delivery of what will become the world’s most advanced offshore heavy lift crane simulator is planned for September 2015. It will be installed at a new simulation centre in the HMC Academy at the company’s HQ in Leiden, the Netherlands.

As a leading international offshore oil and gas marine contractor specialising in transporting, installing and removing offshore facilities, HMC’s requirement when selecting its simulation partner was to develop a system that could train the most competent crane operators and conduct detailed pre-mission training for heavy-lift projects. To meet these requirements, Kongsberg Maritime will develop a unique simulator based on the K-Sim Offshore platform, which is already in use at several high-profile offshore training facilities worldwide.

“In addition to the technical capabilities of the K-Sim Offshore Simulator, especially including its high-level hydrodynamics, it was important to find a simulator supplier that we could work closely with on such an extensive project,” comments Catina Geselschap, Project

manager at the HMC Academy. “Kongsberg Maritime demonstrates not only the technical competence to deliver such a complex and sophisticated simulator, but also an open approach that encouraged dialogue and a willingness to find a solution working in close cooperation with Heerema.”

The Kongsberg Maritime scope of supply includes two offshore crane operator domes and a DNV Class A bridge with K-Sim DP simulator, which is based on the same Kongsberg Maritime K-Pos DP systems used on Heerema’s vessels. To achieve highly realistic training, the K-Sim Offshore simulator will feature detailed models of three HMC deepwater construction vessels; Thialf (Semi-Sub), Balder (Semi-Sub) and Aegir, in addition to several barges (including H-851) and a supply vessel.

Supporting Heerema’s plans to use the simulator for project planning, testing & verification, Kongsberg Maritime is also developing a set of library objects and models of offshore installations and equipment used for simulating specific heavy lift projects; such as lifting Jackets, top sides and subsea templates from barge to vessel or from vessel and overboard. Also included in the delivery is an extensive instructor and debrief system, and two deck operator trainers (deck position simulator) designed to train for communication and teamwork between the crane operator and deck operators.

“Heerema is pushing limits with real operations and the K-Sim Offshore simulator project will push limits within training for heavy-lift applications,” says Harald Kluken, Area Sales Manager, Kongsberg Maritime Simulation. “As our most advanced offshore heavy lift crane simulator to date, this project will take the K-Sim Offshore simulator platform a great step forwards in regards to engineering and pre-simulation for complex heavy lift operations.” •

32 • Oil and Gas Innovation

Conference & Exhibition

Organised by:

Все выступления на конференции, будут переведены на русский, азербайджанский и английский языки.

2nd

AzerbAijAn & CASPiAn SeA

OiL & GAS WeeK 2014 19th - 21st November, Four Seasons Hotel, Baku

Developments, Strategies and Opportunities in Caspian Oil and Gas

gOLD spOnsOr

sILVEr spOnsOr

SPEAKING ORGANIZATIONS

OUR MEDIA PARTNERS

Email: kaltrina@oliverkinross.com

Telephone: +44 207 065 5529

E&P

Aker Solutions Reports Second-Quarter 2014 Earnings Ahead of Split

Aker Solutions is on track with a plan to split into two companies at the end of September, including one that will keep the current name and be comprised of the Subsea, Umbilicals, Engineering, and Maintenance, Modifications and Operations (MMO) areas. Pro forma second-quarter revenue for the new Aker Solutions rose to NOK 8.1 billion from NOK 7.5 billion a year earlier, helped by a 13 percent increase in sales of subsea equipment and services. The new company’s pro forma earnings before interest, taxes, depreciation and amortization (EBITDA) increased to NOK 592 million in the quarter from NOK 481 million a year earlier.

Pro forma revenue for the other company, which will be called Akastor and include Drilling Technologies, Aker Oilfield Services, Process Systems, Surface Products and Business Solutions, climbed 25 percent in the second quarter to NOK 6 billion. The company had a pro forma EBITDA loss of NOK 129 million in the quarter versus a profit of NOK 303 million a year earlier. The earnings were impacted by one-off items totaling NOK 451 million, including a previously announced provision on the Aker Wayfarer, a vessel in the Aker Oilfield Services unit.

“We’ve taken huge strides since announcing the split in April - putting in place new management teams and structures for the two companies,” said Øyvind Eriksen, Aker Solutions’ chairman. “Today we are also announcing the first pro forma earnings figures for these companies.”

New management structures were put in place this month as Luis Araujo, formerly regional president for Aker Solutions in Brazil, on July 1 became chief executive officer of the new Aker Solutions. Frank Ove Reite, formerly managing partner at Converto, became CEO of Akastor. Øyvind Eriksen has been nominated as chairman of the board of both the new Aker Solutions and Akastor.

one-off items, the margin was 7.5 percent in the second quarter of 2014.

New Aker Solutions Margin For the new Aker Solutions, excluding demerger costs and hedges not qualified for hedging accounting, the pro forma EBITDA margin widened to 8 percent in the quarter from 6.8 percent a year earlier, helped by improved operations at the umbilicals plant in Norway, higher capacity utilization for Engineering and good progress on key subsea and engineering projects, including the Johan Sverdrup development. This was somewhat offset by weaker performance for MMO, which had issues with some final project settlements and overcapacity caused by lower demand for maintenance and modifications services offshore Norway.

The new Aker Solutions’ order intake in the quarter rose to NOK 21.4 billion from NOK

Revenue at the current Aker Solutions rose 17 percent to NOK 13 billion in the second quarter from NOK 11 billion a year earlier. EBITDA fell to NOK 429 million, compared with NOK 786 million a year earlier. The EBITDA margin narrowed to 3.3 percent from 7.1 percent a year earlier. Earnings were impacted by impairments and a provision totaling NOK 1.6 billion on assets and goodwill of the Aker Oilfield Services business, which will be part of Akastor after the split. Excluding 34 • Oil and Gas Innovation

6.4 billion a year earlier, boosted by major subsea contract awards, including a NOK 14 billion order from Total to deliver the subsea production system for the Kaombo development offshore Angola. This brought the order backlog to NOK 54 billion at the end of the quarter compared with NOK 41 billion a year earlier.

“Subsea’s order intake was at a record high in the quarter and our focus now is on delivering successfully on these projects,” Eriksen said.

“We also took steps in the quarter to adjust capacity in our Norwegian MMO business, which is being affected by lower demand as oil companies reduce spending plans.”

Aker Solutions started transferring employees to a new subsea engineering hub in Stavanger and used the Aker Advantage recruitment agency to help more than 200 MMO employees find alternative work in the group or with other companies. •

22nd Kazakhstan International

OIL & GAS

Exhibition & Conference

EXHIBITION

2014

30 Sep - 3 Oct Almaty • Kazakhstan Atakent IEC

CONFERENCE

www.kioge.com

2014 1 - 2 October

Almaty • Kazakhstan InterContinental Almaty

CENTRAL ASIA’S LEADING OIL & GAS EVENT For further information, please contact: Tel: +44 (0) 20 7596 5082 Email: og@ite-events.com London • Moscow • Almaty • Baku • Tashkent • Atyrau • Aktau • Istanbul • Hamburg • Beijing • Poznan • Dubai

PIPELINES & LOGISTICS

Hydrauvision: Versatile Specialist in Drive Technology Real partnership means a lot to Hydrauvision.

Knowledge, experience, specialisms - these are the properties featured by Hydrauvision and they gladly share these with their customers. To be able to efficiently meet their customers’ needs, Hydrauvision has several subsidiaries including in Belgium and the Netherlands.

Hydrauvision was originally established in Schoondijke, the Netherlands. From the very early stages, their company stood out from the competition thanks to its unique combination of mechanical engineering design and drive technology. Today, the main activities in Schoondijke comprise the engineering of customised hydraulics.

Promptly and decisively – that is how Hydrauvision supports its customers. Which is only possible thanks to their excellent geographical coverage and a diversity of services.

Its activities revolve around the installation, repair and maintenance of hydraulic systems. A team of highly skilled engineers, well-equipped workshops complete with testing facilities, and a fleet of modern service vans are ready to help their customers quickly and efficiently.

Hydrauvision comprises five divisions: Systems, Services, Components, Rental, and Piping.

Hydrauvision Systems Hydrauvision Systems is specialised in total solutions in the area of motion and control technology and focuses on the complete process, from development up to and including commissioning. They would like to be your sparring partner as well, and help develop your ideas. They have the necessary expertise, experience and inventiveness to help you reach the perfect solution.

During their many years of experience, they have obtained broad and in-depth market knowledge.

You will find their systems in all industrial sectors around the world – from the dredging branch to the steel industry and from petrochemicals to infrastructure.

Engineering forms the basis of Hydrauvision Systems. Their engineers have expansive knowledge and experience and make use of the most advanced engineering tools and CAD software.

During the engineering stage, the outlines of the customised solution will become visible. After all, transparency of all aspects during the early stages will ensure user friendliness and ease of maintenance in practice.

Thanks to short communication lines and a flexible approach, they are able to realise even the most complex projects within a relatively short time.

Hydrauvision Services Because you need your drive system to operate reliably at all times.

Each disruption of the production process is one too many. It should be remedied as quickly as possible. Continuity is essential. That is why their experienced service engineers will revise or repair your system quickly and expertly. This is done either on location or in one of their extensive and well-equipped workshops.

Many repairs can be prevented by preventive maintenance. For example, their experienced maintenance engineers will perform periodic inspections and ensure the timely replacement of all essential components. One of the crucial aspects of maintenance is oil-analysis. After all, contaminated oil proves to be one of the most common causes for malfunctions in hydraulic systems and preventable wear and tear.

A customised maintenance contract will avoid a lot of distress. Yet even a properly maintained system can break down. That is why a contract allowing their customers to contact their faultclearing service on a 24/7 base.

After each repair or maintenance inspection, they will extensively test your installation to be certain that everything is running smoothly again. This is done, for example on one of Europe’s largest test benches. These testing facilities are also used to certify your equipment. When their service engineers are on location, they will use a special mobile testing equipment.

Hydrauvision Components As a specialist in customised solutions for drive systems, Hydrauvision has built up a wealth of knowledge and experience in this area. At least

as important is the quality of the components they use for these. Hydrauvision advises, delivers, assembles and modifies top-quality hydraulic and related products.

The knowledge, experience and high-quality components they apply in the systems they develop, are also individually available to you. Whatever your system, they will deliver suitable components, carefully selected on sustainability, reliability and continuity.

Hydrauvision has a wide range of components available. Next to a variety of motors and pumps, they also supply control valves,

cartridge blocks, oil coolers, filter elements, and all possible associated components.

Should such a component finally need replacement and it is no longer available, they will know exactly which alternative to choose.

Their unparalleled expertise in this area will prove invaluable.

When assembly or modification is required - for example in case of complex components - they can demonstrate their added value by realising such modifications according to your needs and wishes in their own workshops.

Hydrauvision Rental HydrauRent is the established brand name of Hydrauvision for hydraulic rental equipment.

Flexibility, availability and cost control are of the utmost importance in any branch - and particularly in applications when you are in need of extra hydraulic capacity. Thanks to the rental of customised solutions, you are ensured of high-quality equipment according to your own specifications, when and where you need it. Next to powerpacks, they rent out winches, dewater systems, flushing- and filtration units, high pressure equipment and much more – in various sizes and capacities.

Hydrauvision has several subsidiaries including in Belgium and the Netherlands.

PIPELINES & LOGISTICS Hydrauvision Piping Hydrauvision engineers have expansive knowledge and experience

Hydrauvision Piping is an acknowledged specialist in piping. A reliable partner who will support you from the drawing table to the assembly stage, including measuring, advising, engineering, prefabrication and manufacture, construction, and installation. The materials they apply during this process are highly.

Perfect piping They are proud to deploy their many years of experience and expertise for a wide variety of companies. From the maritime industry to the construction sector and from the infra-sector to the petrochemical industry. They will realise a piping system that is accurate to within the millimetre in order to fit seamlessly in the available space.

Customised rental solutions Investing in hydraulic equipment will not always be ideal. Sometimes you only require equipment for a single project, or you are in need of extra capacity for a short period of time only. That’s when Hydrauvision Rental will prove helpful. With a customised solution, including development, engineering, construction and commissioning. Maintenance is included and is realised promptly by expert service engineers. And when your project has been concluded, they will collect all items from location. No worries about storage, maintenance and certification. And – last but not least – you always have a clear overview of the costs.

Modular powerpacks and more HydrauPack takes up a special position. These

hydraulic powerpacks are diesel-driven or electrical. HydrauPack powerpacks have a capacity from 35 to 800 kW. Thanks to their modular concept, powerpacks are easily coupled in order to obtain the desired capacity.

Or they may be linked to another type of module, such as a fuel tank, extra cooling capacity, or storage space.

Offshore Hydrauvision provides temporary equipment to all industrial sectors, including offshore.

For many years they have been working on a safe platform environment, with equipment that has been especially certified and a range of services that will surpass your expectations.

Their offshore frames have been designed and tested according to DNV2.7-3. You can reach them around the clock. Anywhere around the world.

Quality is something they feel very strongly about. This shows in many ways. Their operational management is based on ISO 9002. And sometimes they go even further: their welders, for example, have acquired additional certificates. Whether you choose for a solution according to the prevailing standards and specifications, or a customised one – Hydrauvision will provide you with quality. •

CONTACT DETAILS Hydrauvision B.V Buys Ballotstraat 14 4507 DA Schoondijke Tel: +31 (0) 117 40 72 00 Web: http://www.hydrauvision.com M: info@hydrauvision.com

Hydrauvision Spool & Winches 38 • Oil and Gas Innovation

European Autumn Gas Conference Grange St Paul’s Hotel London UK 28 - 30 October 2014

EUROPE’S PREMIER EVENT FOR SENIOR GAS PROFESSIONALS 2014 Conference Programme Highlights: Trading, Finance & Investment In Gas: Is There Anything Left in Europe – or Shall We All Just Move to Asia…?

Global Market Outlook: Has the Context of European Security of Supply Totally Changed?

Supplier Strategies: What are the Choices for Europe, and Where Will Supply Come From?

Focus on LNG: All Eyes on LNG: Will Europe Remain a Key Global LNG Market?

Policy & Regulation: An Audience With… the Politicians and the Regulators Demand-Side Innovation: The Changing Face of Gas Use in Europe Confirmed speakers include: Andrew Walker, VP Global LNG, BG Group

Han Fenemma, Chief Executive Officer and Chairman of the Executive Board, Gasunie

Jean-Francois Cirelli, ViceChairman and President, GDF SUEZ

Jean-Marc Leroy, Chief Executive Officer, Storengy

To find out more about delegate participation, please contact Laurence Allen, Marketing Manager at laurenceallen@dmgevents.com or call +44(0) 203 615 0390 www.theeagc.com Organised by:

Gold Sponsor:

Bronze Sponsors:

PIPELINES & LOGISTICS: PROTECTION

Your Partner for Subsea Pipe & Cable Protection Worldwide When you work with most of the major oil & gas operators and subsea installation contractors, (who themselves are world leaders) you have to deliver the best. Pipeshield explains to OGI readers why they have designed and executed projects in locations from Abu Dhabi to Singapore, from the North Sea to the Black Sea. Their offices are located in Lowestoft and London. Their manufacturing bases are in Montrose, Teesside, Great Yarmouth, SE Asia, South Africa, Abu Dhabi and Baku. If required, they can locate manufacturing crew and equipment virtually anywhere in the world.

Pipeshield International Ltd is a global provider for products, services and solutions that protect offshore pipelines, cables and equipment for the oil/gas and renewables industries. Our current operations include Europe, South Africa, Caspian, South East Asia, the Middle East and beyond.

Our leading products are: Protection structures; pipeline supports; bridge crossings; concrete mattresses; bitumen mattresses; rock bags; frond anti-scour products; grout bags and fabric form-work; grouting works; installation equipment and other added value services.

Bespoke solutions Pipeshield professionally design and manufacture cost effective solutions to exact standards, for any subsea installation or operational situation; we can adapt every solution to each client’s unique requirements around the world and deliver on time and on budget.

Our engineering expertise is second to none within our sector and our experienced and highly qualified engineering and design team can advise to get the best and most effective result.

Commitment to quality Our systems are designed and engineered to ensure the tough Marine environment.

We are accredited to BS EN ISO 9001, BS EN ISO 14001, OHAS 18001, we have the Safe Contractor certificate, Investors in People and are verified members of FPAL/Achilles. We are also proud to have won our third Queens Award for International Trade in 2013. • Recent projects • Shah Deniz Stage 2 Project – BP Caspian • Sensor Tower platform project Qatar

– NPCC • Premier Solent – Bibby Offshore • Rough Wind farm project – Technip Offshore • Gwynt Y Mor Wind farm Phase II - RWE Pipeshield International Ltd +44 (0)1502 560900 info@pipeshield.com

Speed loader Courtesy of Center for Land Use Interpretation 40 • Oil and Gas Innovation

9th Mangystau Regional Oil, Gas & Infrastructure Exhibition

11–13 November 2014

Aktau • Kazakhstan

At the Heart of Kazakhstan’s Oil, Gas and Infrastructure

Tel. +44 (0)20 7596 5082

Email: og@ite-events.com

London • Moscow • Almaty • Baku • Tashkent • Atyrau • Aktau • Istanbul • Hamburg • Beijing • Poznan • Dubai

PIPELINE & LOGISTICS: GAS LEAKS

We Invent to Prevent With monitoring systems of the highest class for science, industry, police and military as well as for the private sector provides Pergam-Suisse AG the widest selection of gas monitoring systems for every need. Not only is the long-standing experience in the development of these instruments, also the knowledge by using our own inspectors carry significantly to this success.

The Pergam Group is a major international company with offices in three continents. We are represented in USA, Europe and Russia.

At our location in Zurich, innovative devices through the development, design, testing and production are brought to market. Emphasis is placed particularly on high quality and functionality. Years of experience in various areas such as GLD, PLI, NDT and CVS and a strong relationship with world’s major manufactures, Pergam Suisse AG is the ideal partner for you.

Pergam Suisse AG represents and distributes the following devices.

Complete Pipeline Surveillance Natural gas is essential for homes and businesses. Natural gas is transported to the consumer through an ever growing network of pipelines and gas lines. Thousands of compressors, measuring stations and a plurality of valves all have the potential to leak . The uncontrolled release of natural gas into the environment is not only potentially dangerous and wasteful but also harmful to the environment as they contain 90% of the earth’s methane gases ( GHG ).

The conventional monitoring methods (visual inspection) detect leaks only above a certain size. These methods are costly or ineffective in remote areas and do not meet to customers requirements.

ALMA G2 (Airborne Laser Methane Assessment) is the solution for an effective and economic pipeline, plus network inspection . ALMA G2 is the latest natural gas leak detection system.

ALMA G2 is equipped with a pulsed diode laser. The laser beam is directed onto the pipeline towards the wind direction.

The reflective and scattered reflections are collected by a mirror on the underside of ALMA G2. When methane is present the laser light will be absorbed and the deformation of the signal is proportional to the concentration of methane the laser beam path.

Security for Natural Gas Lines Natural gas - an ideal energy: Natural gas is versatile, economical and environmentally friendly. Natural gas passes through underground pipelines from the sources to the distribution centres. All pipelines,

transfer stations and other facilities have to be inspected regularly and conscientiously.

The new gas detector mounted on a car SELMA is designed for periodic review of technical conditions of underground pipelines in urban areas. In cooperation with local distribution companies, a methane detector has been developed which is based on the practical needs of the end user. This makes SELMA to a perfect tool for diagnosis of urban gas pipelines. SELMA can detect gas leaks in front and beside of the car. The system will output alarm when methane is detected. The included software generates a complete report which guarantees complete traceability.

The working principle of the methane gas detector is a pulsed laser diode beam. This technology guarantees no interference from other gases in urban areas where the air is saturated with various hydrocarbons (exhaust gases, etc.).

Laser Methane Mini G A new era in portable methane detection has arrived. Truly portable offers the laser methane detector (LMD) and Laser Methane Mini-G (LMmG) users the ability to detect methane in the distance. What was once a time-consuming process is now done in a fraction of the time by using the best diode laser technology. There are two available

SELMA: Gas detector mounted on a car.

ALMA G2

versions: Laser Methane mini is especially suitable for use in hazardous areas. The laser methane mini-G has no hazardous zones admission but a three times stronger green laser suitable for measurements under strong sunlight. Laser Methane Mini also available as a version for use in potentially explosive atmosphere areas.

LMS Remote Laser-based Gas Monitoring System LMS-Remote is a stationary natural gas leak detection system for remote monitoring of elevated methane gas concentrations in ambient air. It is specifically designed for the constant scanning and monitoring of mission-critical areas such as compressor stations, gas tanks, storage facilities, tank farms, gas stations and LNG Terminals.

The LMS-Remote System is based on new technology for detecting natural gas leaks.

The system utilizes a post diode laser at a wavelength of 1.65 Âľm allowing the system to detect traced amount of gas concentrations.

The optical unit is installed on a pan tilt platform and is designed to scan remote

pre-set areas or pre-set target points. A laser beam is emitted from the sensor and strikes a remote object. The system analyses the laser light back scatter to determine how much, if any of the laser energy was absorbed by methane along the laser-light path. A unique detection algorithm allows for real-time measurement of the methane concentration above atmospheric levels. A video camera is installed in the detector helps the operator in determining the gas cloud location online.

Laser Methane Mini is especially suitable for use in hazardous areas.

The system consists of three components: 1. The optical unit is mounted on a new generation of servo driven pan/tilt head installed at an elevated location such as a facility mast lighting. This components contains the laser, receiving system, HD video camera, control board, heater, reference cell and signal processing board.

2. The electronic unit includes special instrumentations boxes with communication equipment and DC converter.

3. The operator PC constantly monitors detection alarms, system control, data, video storage and historical data analysis. The system continually records data including coordinates of leaks, sizes of leaks and additional information about system operations. A report about system operations, leak sizes and locations can be made using the included data-processing software. •

CONTACT DETAILS Pergam Suisse AG Talacker 42 CH 8001 ZĂźrich Switzerland www.pergam-suisse.ch info@pergam-suisse.ch

LMS-Remote is a stationary natural gas leak detection system.

REFINING & PROCESSING

Development and Verification of Plastic Materials for the Oil & Gas Industry

Plastics have a lot of opportunities as corrosion free, lightweight and durable material for many components and applications in the oil and gas sector. Still, many companies need support to define how to utilise plastics and rubber, select appropriate materials and verify their performance.

Explorations also put continuously new demands for improved materials withstanding higher pressure, aggressive environment and Arctic conditions.

Successful implementation of plastics as replacements for traditional materials is a challenging task and is a result of the industry’s ability to develop tailor made polymer recipes meeting the demands for physical performances and life time. Norner AS is a unique innovation and technology centre with 35 years of industrial experience in materials development and optimisation. Their lab facilities cover polymer modification and processing, prototype production, physical testing, testing of ageing and compatibility as well as failure analysis. These polymer engineering and testing services offered by Norner facilitate better success rates of new product and material developments in the oil & gas industry value chain.

Performance testing at real conditions is critical for service life verification In a recent project for demanding polymer applications (DEPA), a key target was to understand the performance and ageing in seawater. Ageing of plastics are typically made in air and tested at several temperatures over long time. The results are used to extrapolate the life time expectations of the polymers.

Polypropylene (PP) materials under development in the DEPA project were tested both in air and sea water. This was important both to check if the (simpler) test in air would give reliable results and to verify the real performance in seawater. Surprisingly the results of ageing and degradation were very different.

In these comparative tests, plastic specimens of the same material, was aged in air at 110°C vs. sea water at 90°C. After fixed exposure times, samples were taken out and their residual degradation stability was tested by an oxidative induction time test. Even if the samples in air was exposed at higher temperature, the samples in sea water had only 20% residual stability after 4 months compared to samples in air. After careful investigation and chemical analysis by Norner, it was finally concluded that specific

types of antioxidants were needed in order to achieve an estimated lifetime of 25 years at 30 bar pressure in seawater.

Polymer formulations for harsh chemical environments In a client project it was required to develop a new polymer material recipe to yield a step change in longevity of PP (polypropylene) in harsh chemical environments. A novel recipe of additives and stabilisers was developed to achieve a break though in service life. The new development will be a benefit for piping, liners or process installations for transportation and handling of fluids like hot water, warm hydrocarbons and various alkaline liquids. The results achieved have demonstrated more than 25 years of service life at 70°C. This was verified by accelerated testing. The drastic improvement in longevity opens up new opportunities for the use of polymers in oil & gas engineering.

“Norner has the competence, equipment and resources required to investigate product and material failures” The material and recipe development was made solely

by Norner experts and labs.

With conventional state of the art recipes the service life of such materials would be <5 years while it has been demonstrated more than 25 years of service life at 70°C by accelerated testing for the

new recipe. The material was undergoing thorough exposure testing in the development phase to verify its longevity and high durability. The exposure testing was made with several fluids having different aggressiveness.

Fatigue testing and lifetime predictions Failures due to poor material selection or poor design can be avoided by understanding how the material is influenced by the operational environment.

Plastic materials can be corrosion free.

Fatigue is the progressive and localized structural damage that occurs when a material is subjected to cyclic loading. Fatigue testing is an important area of testing for the oil & gas industry at Norner and is used to predict the life time of components or test fatigue properties of materials. The influence of heat, chemicals, different climates and UV radiation on fatigue properties can also be studied.

Failure Analysis Product and material failure represents huge costs in repair, replacement, down time and involvement by personnel. Norner has the competence, equipment and resources required to investigate product and material failures, document the reasons behind and provide conclusive reports with proposed solutions. Our specialised microscopy lab has long experience in supporting the industry.

We serve our customers in a personalised way and enjoy working with our international clients.

Plastic Material development and consulting Norner is active within plastics material development and research, technology and concept investigations as well as problem

solving and failure analysis with additional experience with polymer foams, heat insulation and conductivity. We support companies with developments and quality assurance in the field of buoyancy solutions for risers, pipes and seismic cables.

Our experts and labs can support material development to ensure sufficient service life design in harsh environment as well as performance assessment of new solutions.

We help companies to increase their value

creation through increased competence, technical documentation, process enhancement, product development and quality improvement. Our capabilities cover material testing, advice or know-how, complex catalytic gas process simulations or development resources in plastic products.

Material testing according to NORSOK standards Norner demonstrates commitment to the oil & gas industry through investments in more testing facilities for Norsok M-710 and chemical compatibility. The new facilities have now been installed and methods for testing of non-metallic materials in contact with media related to Oil and Gas production according to ISO and Norsok standards are established. This is a logic extension in our laboratory for ageing, compatibility and weathering durability.

Norner laboratories can now offer ageing under high pressure and high temperature in seawater or aggressive liquids and gasses.

Norsok M-710 is a test regime for qualification of non-metallic sealing materials and manufacturers as well as compatibility testing, ageing under severe conditions. Furthermore the ISO 2393 standard is a broader test regime for thermoplastic and elastomeric materials in contact with media related to Oil & Gas production. â&#x20AC;˘ Norner AS is an independent plastics institute based in Norway. Research and Development has been conducted for over 35 years in the fields of Polymer Modification & Polymerisation, among other disciplines.

CONTACT DETAILS Norner AS Telephone: +47 35578000 Contact: post@norner.no www.norner.no Many companies need support to define how to utilise plastics and rubber in the offshore sector.

REFINING & PROCESSING

Oxifree Explains to OGI Readers the Profound Problem of Corrossion in the UK and Around the World

ICORR - Institute of Corrosion: The fight against corrosion costs the UK around 4% of GNP per annum. Key to this fight are the establishment and promotion of sound corrosion management practice, the advancement of cost effective corrosion control measures, and a sustained effort generally to raise corrosion awareness at all stages of design, fabrication and operation.

Corrosion within most engineers divisions globally, is a perpetual problem which is fundamentally a losing fight with no end other than expense. Tried and tested means to control corrosion have been around for many years but the issue continually remains a thorn in any engineers or technicians side as there is no clean, safe way to limit the damage caused by corrosion.

Engineers, designers and managers alike, must fight these costs. Imperative to the fight against corrosion is the inauguration and promotion of corrosion management practices and effective Planned Preventative Maintenance (PPM) schedules to ensure measures to fight and to raise corrosion awareness at all stage of design, manufacture and operation. There is no escaping the simple fact that paint and epoxy coatings of varying types and degrees are the ultimate coating system for coating pipes, flat-works and support structures. But what happens to flanges, pipe unions and to bolts that require periodic torque tightening? Or when a failure is reported? Flanges or union used to join two pieces of pipe together are hugely important in the successful transfer of the material within the pipe. However in modern piping

An Oxifree engineer

and transfer systems, the nuts and bolts used to hold the flange together are purposely designed to be the sacrificially anode, (is that not an oxymoron of design?) As the fundamental structure is actually designed to rot.

In todayâ&#x20AC;&#x2122;s engineering mind-set retrospective

46 â&#x20AC;˘ Oil and Gas Innovation

fitments of resins, pastes and wraps seem to be en vogue for integrity engineers to protect and prolong the life of vital, pivotal components to save money while also saving and preserving asset integrity and longevity.

However the truth remains that these means are not 100% effective and they simply mask

Oxifree plastic polymer coating

a problem that demands control and delay of the inevitable. Those certain tapes and pastes are now becoming old hat with the inception of a new and inventive thermoplastic resin coating systems that is taking the market by storm. The old tape and grease option leaves the age old disgusting residue behind that make inspection and visualising and identifying defects impossible. The putty type corrosion prevention system are great for their specified tasks, but what happens when you need to gain access for inspection, maintenance, repair or simply an inquisition as to what is happening underneath or the integrity of the substrate?

This is exactly where the proven dynamic of Oxifree comes into its own. Does the option of corrosion prevention systems, that forms exactly to the substrate, with a built in corrosion inhibiting agent, that does not adhere, does not leave a sticky or messy residue and that WILL preserve the life of assets for over 20 years seems too good to be true? But it is available in the UK and around the world, with the bulk of the super-major oil companies identifying with the benefits of a passive, environmentally friendly

“The annual cost of corrosion worldwide is US$1.8trillion, which is over 3% of the world’s GDP. ” Extract from NACE.

encapsulation technique as a viable alternative to costly, messy archaic methods.

This encapsulation method is as pure and as simply as it states; it is a plastic polymer that is heated to melting point via a purposely designed hopper, then pump fed through a heated hose and through a heated gun directly onto the substrate as a jet of liquid. This liquid cools instantly and forms directly around any shape and form to create a naturally impervious cocoon around the substrate. This plastic has impregnated inhibitor oil within the polymeric compound which is designed to bleed onto the surface of the substrate actively creating a barrier to prevent any

“On North Sea production platforms, 60% of all maintenance costs are related to corrosion.”

2003, Saudi Aramco global study. capillary action of moisture and electrolytic particles. This actively prevents corrosion rather than delay it. Being an oil secreting polymer, these plasticised methods do not adhere to the substrate and can easily be removed. Better still, the formed plastic coating can simply be cut and pulled away and re-melted for reuse – thus it is only purchased once. There are different formulation of the same idea, but only the original Oxifree TM198 is VOC free, environmentally 47 • Oil and Gas Innovation

“The fight against corrosion, costs the UK around 4% of GNP per annum.” - Direct quote from ICORR; the UK Institute of Corrosion. friendly and is fed via a motorised airless pump system, so when it is applied, it can actually be ultrasonically tested through with no air bubbles in the coating.

Oxifree produces all material and equipment in the United States to ensure complete visibility of every molecule of every component; Oxifree isn’t “knocked up” in a garage in China or a shed in Malaysia. Oxifree is a warranted product designed, ultimately to save you money, to ensure a safe, comfortable working environment and to protect our natural environment and with Contracts with BP, SSE, Talisman, Chevron, Allseas, Bilfinger Oxifree is the future in corrosion control, corrosion management and corrosion illumination. • Contact Details: Oxifree UK Limited Tel: +44 330 330 0004 Email: info@oxifree.co.uk URL: www.oxifree.co.uk

REFINING & PROCESSING

New Awards in Oil and Gas Sector in Belgium ExxonMobil Announces Antwerp Refinery Investment of More Than $1 Billion

The polymer modified bituminous binder “Alfabit”, produced by Rosneft was selected as component for the top layer of the asphalt for the fast track Formula 1 “Sochi Avtodrom”.

ExxonMobil affiliate Esso Belgium, a division of ExxonMobil Petroleum & Chemical B.V.B.A., announced today it plans to install a new delayed coker unit at its Antwerp refinery to convert heavy, higher sulfur residual oils into transportation fuels products such as marine gasoil and diesel fuel. The new unit will expand the refinery’s ability to help meet energy needs throughout northwest Europe, despite a challenging industry environment.

The “Alfabit” group of products of road bitumen were developed on the basis of world famous European technologies. For many years these technology products have been successfully applied in Germany for the construction of expressways. Jointly with German colleagues, Rosneft has carried out the development of the formulations for the production of polymer-bitumen binders (PMB) adapted to Russian climatic conditions.

“Our investments at this refinery, totaling more than $2 billion in less than a decade, will contribute to meeting the demand for fuels and finished products from our customers in Europe,” said Jerry Wascom, incoming president of ExxonMobil Refining & Supply Company.

“This new unit, along with the recently completed 130 megawatt cogeneration unit and diesel hydrotreater at the Antwerp complex, reaffirms ExxonMobil as a leader in the European and global energy markets.”

Since 2008 Alfabit is produced in large quantities at a plant in the town of Ryazan. Bitumen grades, supplied directly from Rosneft refineries at Yaroslavl, Syzran and Ryazan were used as raw material. Styrenebutadiene-styrene thermoplastic elastomers (SBS) of European manufacturers were selected as polymer component.

Despite extremely low margins and industry-wide losses in Europe, due primarily to excess refining capacity, ExxonMobil is investing for the long term in its strategic Antwerp refinery. The investment addresses an industry shortfall in capability to convert fuel oil to products such as diesel.

This project demonstrates ExxonMobil’s long-term view and disciplined approach toward business investments, and is the first of several being evaluated to further strengthen strategic refineries in Europe to more successfully face the challenging industry environment. ExxonMobil’s annual Outlook for Energy projects that Europe’s demand for diesel fuel will remain high in the coming decades for trucking and other commercial transportation.

“In addition to enhancing ExxonMobil’s strongly performing Antwerp facility, the new delayed coker unit will further strengthen ExxonMobil’s integrated downstream and chemical portfolio in northwest Europe to better compete in the challenging global industry environment,” said Stephen Hart, regional director of ExxonMobil Refining & Supply Company. “This investment will add to our product slate at the Antwerp refinery and deliver much needed cleaner diesel to our European customers.” •

Distinctive features of Alfabit are its high elasticity, durability and resistance to deformation. These characteristics of Alfabit were taken into account when choosing a binder for the preparation of asphalt mixtures for example for racing tracks. The wearing course has to withstand the extreme demand and load of racing cars at high speed.

The race track was designed by the architectural Bureau of Tilke Engineering (Germany) under the direction of Mr. Hermann Tilke – the experienced developer of Formular 1 race tracks around the world.

Prior to this, the German company has successfully finished two similar projects in Russia – the “Smolensk ring” (Smolensk, 2010) and Moscow Raceway (Volokolamsk, 2012). The wearing courses of these tracks were also built with Alfabit.

For choosing construction materials for the Sochi Circuit, engineers of Tilke Engineering were guided by their own experience in Russia.

The experts checked the consistency of qualitative parameters of a number of manufacturers of aggregates and bitumen binders.

Responsible for the design and construction of the “Sochi Circuit”, JSC “Center Omega”, jointly with specialists of Tilke Engineering, conducted preliminary laboratory studies on “ Alfabit” - to ensure that components have the required product quality for the project.

In spring 2014 the first test laying of the polymer modified asphalt concrete took place. The parties were satisfied with the results. •

48 • Oil and Gas Innovation

WHY IS ONS 2014 THIS YEAR’S MOST IMPORTANT MEETING PLACE FOR THE GLOBAL ENERGY INDUSTRY?

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1250 exhibitors and more than 60,000 visitors. Experience innovative technological solutions and meet new partners and clients.

For everyone working in the oil and gas industry. Listen to, discuss with and be inspired by visionary state leaders, ministers, CEOs and innovators from around the world.

A vibrant city centre. Culinary adventures. Great artists.

Cultural fireworks. At night you can pick and choose from our rich festival menu.

ONS celebrates its 40th anniversary in 2014, and has grown to become the leading meeting place for the global energy industry. This year’s theme is changes; the changes that affect technology, innovation, renewable energy and the global resource situation. Welcome to four days and three nights of business-boosting events. www.ons.no

REFINING & PROCESSING

DrM

Dr. Mueller AG, Switzerland www.drm.ch DrM, Dr. Mueller AG Alte Landstrasse 415 CH- 8708 Maennedorf Switzerland

High efficient Solid/Liquid Separation Oil and gas processing industries are confronted with the removal of H2S, CO2 and other contaminants from the gas streams. DrM FUNDABAC filters provide for excellent removal of suspended solids, which in turn decreases foaming, corrosion and associated loss of productivity.

(Complete Fundabac filtration plant with active charcoal filters, Persian Gulf)

Automated amine cleanup system for world-scale sour gas treatment plants New world-scale sour gas treatment plants with multi-billion 3 Nm per year capacity also involve the clean-up of large flows of lean amine. The clean-up, which is traditionally done in a 10 to 20% by-pass stream to the lean amine, requires solid/liquid filtration equipment with 100 to 3 600 m /hr name plate capacity.

The scale of these filters as well as the logistical demands imposed by the remote location of many of these new gas plants have made static disposable filters economically unattractive. Labor costs and costs for supply and disposal become prohibitive. Self-cleaning, automated pressure candle filter of the FUNDABAC type have shown reliability since their introduction in 1988. Aside from the reduction on the burden side, these high efficiency filters provide for excellent

removal of suspended solids, which in turn decreases foaming, corrosion and associated loss of productivity.

(Filter internal)

The capacity of these FUNDABAC systems has been successfully scaled-up to modular 2 areas in excess of 100 m .

A significant feature is the dry discharge of the filter cake, which can be readily land filled for disposal. The elimination of process liquid offers significant savings for gas plants located in arid areas.

High efficient Solid/Liquid Separation Oil and gas processing industries are confronted with the removal of H2S, CO2 and other contaminants from the gas streams.

A straightforward method is to pass alkanol amines in the form of MEA, MDEA, DEA, etc. through a scrubber to absorb the disturbing substances and "sweeten" the sour gases.

Automated amine cleanup system for world-scale sour gas treatment plants

In circulatingsolvent systems, ingress of contaminants or degradation of the solvent is often inevitable. These contaminants cause fouling and foaming inside the absorber as well as corrosion of the carbon steel equipment and piping.

An effective method to remove these contaminants is recognized as being essential for the performance of the entire gas treatment plant (see picture “ gas treatment system”).

In recent years it was shown, that efficient solid-/liquid separation is one of the most effective methods to reach a stable operation and reduce maintenance. Today’s stringent sales gas specification, the use of formulated or high efficient solvents and enlarged gas capacities call for specific filtration solutions.

Automatic filters usually run with a filter aid precoat, which is used to remove the very fine contaminants, mainly iron sulfide.

When a filter aid layer is built up on the filter cloth before commencing filtration (precoating), a combined surface and depth filtration can be observed. Larger particles are retained on the precoat surface and form a porous cake while finer particles penetrate into the precoat layer where they are retained.

The precoat allows a more homogeneous pressure drop over the whole filtration cycle, the filter cloth is protected against clogging and the filter cake can be easily discharged. To reach a permanent high efficiency and improved filterability, filter aids are widely used in solid/liquid separation.

Before starting filtration, a precoat solution is prepared and circulated through the filter until a layer of precoat is built up on the filter elements and the filtrate runs clear. Filtration continues until the pressure drop over the filter elements reaches a limit. The filter is then taken off-line for discharge of the impurities. The down-time required for filter regeneration is usually around 45 minutes. Filtration times are typically in the range of two weeks, subject to the level of impurities.

As a standard filtration system, replaceable cartridge filters have typically been applied. However, for larger plants maintenance cost can become very high and in such cases, an automatic system becomes a viable option.

The main disadvantage of standard precoat filters is their discharge system. Such filters normally flush back the impurities with demineralized water and discharge the complete volume of the filter vessel as slurry. This produces a considerable amount of waste, which then has to be processed further.

Principles of Operation Typically a 10 to 20% amine slip stream is taken off from the main amine circuit and directed through the filter for removal of particles.

Filtration is preferably performed on the lean side of the amine loop. (see picture “amine treatment system”) (Cake removal)

Often, the slurry is sent into an agitated tank from where it is pumped to another filtration unit, such as a filter press. This second filter often runs manually and creates additional operating costs for the plant.

In case the slurry is sent to sewage treatment, a number of other costs occur: Firstly, it is questionable if the treatment plant

(Cake formation, discharge)

DrM

is prepared to effectively decompose amines. If not, these will be discharged into the environment untreated. Secondly, There is a considerable loss of amines involved, which can be in the region of 5’000 liters of amine solution per filtration cycle.

To target this problem, the ® FUNDABAC filter was introduced into this industry a number of years ago. This filter type allows for automatic dry cake discharge in one single unit and can therefore reduce the complexity of the treatment system significantly.

In the meantime nearly 40 units have been sold for this specific application and large experience has been gained. ®

The FUNDABAC Filter ®

The FUNDABAC filter housing is a vertical, cylindrical pressure vessel, equipped with a bolted-on lid at the top for mounting the filter elements, and a conical bottom portion for the discharge of solids.

Because of this simple construction and no moving parts, it is possible to apply various kinds of materials of construction for the vessels and to take advantage of process-oriented claddings or linings.

During filtration, the liquid passes from the outside through the filter media into the six concentric perforated tubes and flows down into the bottom of the candle where the filtrate is deflected into the center tube, flowing up into the horizontal register and out through the filtrate outlet (see picture “Cake formation”).

For discharging the cake, the pressurized gas flow is reversed and blows up the filter media around the tubular element. This sudden dynamic expansion of the media makes the cake break, drop into the cone of the filter vessel and out through the discharge valve (see pictures “Cake removal”).

Automated amine cleanup system for world-scale sour gas treatment plants

Advantages of the FUNDABAC

®

1. Dry Discharge of Solids The unique dry discharge ability provides main advantages in Amine Gas Sweetening systems with relatively high or fluctuating levels of impurities. The systems operate fully automatic and totally enclosed from the environment.

Manual handling is reduced to a minimum and contaminated slurries that require further treatment are avoided completely.

By operators it is regarded as very reliable because once installed it does not require much attention.

2. Highest Flexibility A higher solid concentration means a quicker fouling of the precoat (i.e. the filtering element).

A slurry type discharge system, however, is obliged to maximize the operating cycle time, otherwise the amount of slurry to be treated is increasing drastically. Due to the dry discharge ability, the ® FUNDABAC system is not limited in this way.

3. Higher Filter Efficiency Unlike other systems the ® FUNDABAC can handle highly efficient types of cellulose or mineral filter aids, which are required to achieve a 1 micron filtration rating. Typically, such types of filter aid cannot be detached properly from the filtering element by water flushing or vibration. Especially plate or leaf type filters as well as circular elements are limited in this instance due to their poor ability to discharge (i.e. detach) the precoat layer from the filter surface. Thanks to the tubular form and unique shape of the filtering surface of the ® FUNDABAC element, efficient detaching is achieved by a sudden dynamic movement during the back pulse.

DrM DrM, Dr. Mueller AG Alte Landstrasse 415 CH- 8708 Maennedorf Switzerland

DrM

(Sample top-left, fluid feed stream after 1 hour filtration, 42 mg/l.

Sample top-right, filtrate fluid stream from amine plant after a hour of filtration, 2 mg/l.

Sample down-left, fluid feed stream from amine plant after 15 hours of filtration, 16 mg/l.

Sample down-right, filtrate from a FUNDABAC filter after 15 hours of filtration, < 1mg/l.)

4. Solution for Waste Disposal Problems The dried cake contains solid filtered impurities, filter aid and approx. 30 - 40% residual moisture. At this dryness the cake appears as a crumbly powder, free of airborne dust and can be easily handled. The normal way to get rid of this material is disposal on a dump site, however, incineration can be considered in case cellulose is used as precoat material.

6. Save Operating and Maintenance Cost As the filter element is regenerated after each filter cycle, no fouling of the media occurs.

Normally, the filter cloths are replaced during scheduled maintenance shut-downs every 2 - 5 years. This represents a significant contrast to standard cartridge filters, where units have to be taken out of operation frequently and considerable labor and material is required to change the loaded filter elements.

5. Solution for Water Shortage Problem Gas production plants are often located in climates, which are not naturally rich in clean water. The ® FUNDABAC Filter does not require any water for operation.

Precoat make-up is normally done with amine. Water back wash or flush is not required due to the dry discharge system.

(Cost Comparison)

Dr. Mueller AG, Switzerland www.drm.ch DrM, Dr. Muller LTD Swiss Tower, 36th Floor P.O. Box 309057 Dubai UAE

UPCOMING EVENTS Oil & Gas Warsaw 2014

GOG Gulf of Guinea Gas Conference

17 - 18 September 2014 Email: pietrzyk@ztw.pl

Abuja , Nigeria http://www.cwcgog.com/ 10/28/2014 - 10/30/2014

URL: http://www.naftaigaz.ztw.pl/

International Pipeline Exposition

Geofluid

30 Sept - 2 Oct 2014 Calgary, Canada paulaarnold@dmgevents.com

1- 4 October 2014 Email: enquire@iqpc.co.uk URL: http://www.geofluid.it/app/index.jsp

FT European Gas Summit

London , United Kingdom www.ft-live.com/gas 10/23/2014 - 10/23/2014

Gassuf

14-16 October 2014 http://www.gassuf.ru/defaulteng.aspx

Annual Gas to Liquids Conference

London , United Kingdom http://www.smi-online.co.uk/2014gtl42.asp 10/29/2014 - 10/30/2014

Expo Oil and Gas

28 - 31 October 2014 Bogota, Colombia http://www.expooilandgascolombia.com/ info@corferias.com

Brasil Petróleo, Gás & Biocombustível 2014

Mangystau Regional Oil, Gas and Infrastructure Exhibition Aktau , Kazakhstan http://www.mangystauoilgas.com/ 11/11/2014 - 11/13/2014

11 - 14 November 2014 Salvador, Brasil http://www.multifeirascongressos.com.br/ delfim@multifeirascongressos.com.br

Romania Oil & Gas Conference

Bucharest , Romania http://www.romania-og.com/ 11/18/2014 - 11/19/2014

Offshore South East Asia 2014 Marina Bay Sands, Singapore 2-5th December 2014 http://osea-asia.com/ osea@sesallworld.com

Kurdistan - Iraq Oil & Gas Conference

Erbil , Kurdistan http://www.cwckiog.com/ 11/30/2014 - 12/03/2014

Offshore Energy Exhibition and Conference Amsterdam , Netherlands http://registration.offshore-energy.biz/ 10/28/2014 - 10/29/2014

Shanghai International Shale Gas Summit

SPE Asia Pacific Oil and Gas Conference and Exhibition Melboume , Australia www.spe.org/events 10/20/2014 - 10/22/2014

Shanghai , China http://www.sippe.org.cn/en/index.asp 12/04/2014 - 12/06/2014

NAPE Rockies - North American Prospect Expo

Denver CO , United States 12/10/2014 - 12/12/2014

54 • Oil and Gas Innovation

UPCOMING EVENTS FLNG World Congress 2014

Africa Oil & Gas Expo

URL: www.flngworldcongress.com

http://www.africaoilexpo.com/

Adipec 2014

RIO OIL & GAS 2014

10/09/2014 - 10/10/2014 Johannesburg , South Africa

25 Jun - 28 Jun Email: enquire@iqpc.co.uk

Rio de Janeiro, Brazil

10-13th november Abu Dhabi

3rd Oct 2014

Global Petroleum Show

IPLOCA’s Annual Convention

Calgary AB , Canada 06/10/2014 - 06/12/2014 http://www.digitalrefining.com/55,events,Global_Petroleum_Show. html

Pipeline and Energy Expo

Abu Dhabi , United Arab Emirates 10/13/2014 - 10/17/2014 http://www.iploca.org/page/content/index. asp?MenuID=518&ID=1360&Menu=1&Item=34.7

Offshore Energy Exhibition and Conference

08/25/2014 - 08/27/2014 Tulsa OK , United States

Amsterdam , Netherlands http://registration.offshore-energy.biz/

http://www.pipelineenergyexpo.com/home

10/28/2014 - 10/29/2014

World Shale Oil & Gas Summit

Oil Sands Trade Show and Conference

Dallas TX , United States http://www.world-shale.com/

09/09/2014 - 09/10/2014 McMurray AB , Canada http://oilsandstradeshow.com/2014/

11/04/2014 - 11/07/2014

World Future Energy Summit

KIOGE 2014

Abu Dhabi , United Arab Emirates http://www.worldfutureenergysummit.com/ 01/19/2015 - 01/22/2015

30 September - 3 October 2014 Almaty, Kazakhstan

AAPEX Global Conference

World LNG Fules Conference

London , United Kingdom http://www.appexlondon.com/2014/index.cfm 03/03/2015 - 03/05/2015

Houston TX , United States http://www.worldlngfuels.com/about/ 02/02/2015 - 02/04/2015

SPE Indian Oil and Gas Conference and Exhibition

IADC Drilling HSE&T Asia Pacific Conference & Exhibition

Mumbai , India www.spe.org/events/calendar/ 02/11/2015 - 02/13/2015

55 • Oil and Gas Innovation

Kuala Lumpur , Malaysia http://www.iadc.org/events/ 03/11/2015 - 03/12/2015

We’ve got it covered

Oil & Gas, Renewables, Specialist Projects

Pipeshield International Ltd is a world leader in engineering subsea protection and stabilisation systems. We have a proven track record of delivering products, services and solutions to withstand the most challenging and toughest subsea environmental conditions.

Leading products include: ● Concrete & Bitument mattresses ● Pipeline and cable protection and crossing support structures ● Anti-scour fronded solutions ● Freespan correction ● Offshore grouting services We also provide a range of added value services including lifting and installation equipment, subsea rated bulkbags and field joint coatings.

Pipeshield is certified to ISO 9001, 14001 and OHSAS 18001 demonstrating our well managed and robust quality, environmental and safety management systems respectively. Our current operations include manufacturing facilities and arrangements strategically positioned around the world including the UK, Europe, Caspian Region, South Africa, Middle-East and Far-East.

Award Winning

Pipeshield International Ltd are proud to have won our third Queens award for International Trade.

www.pipeshield.com

info@pipeshield.com

ISO 14001 Registered Firm

International Accreditation Board

Certificate No. EM2000446

Registration No. 0044/1

ISO 14001 Registered Firm

International Accreditation Board

Certificate No. EM2000446

Registration No. 0044/1