Oil, Gas and Shipping Magazine

ISSUE 85 www.ogsmag.com

Belize Natural Energy: Forces of nature

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• The Editor

The energy within

Editor

The

E

nergy is a strange phenomenon. Physicists think of it as the ability to do work; a force that makes things happen.

Energy comes in many forms, and can be converted to suit your purpose. When energy is applied to a task, you can see and feel the effects, but you can’t see the energy itself.

Mysterious indeed.

Energy derived from oil and gas heats our buildings, fuels our cars and helps us perform our everyday tasks. This is exactly the type of energy you’d expect to read about in a magazine with a title like ours, and there’s plenty of material on the subject in this issue, don’t worry.

Every now and then, however, you encounter someone who opens your eyes a little further than they’re used to and you wonder if there are things to learn about energy that you never dreamed of before. I’m talking about Susan Morrice and Josh Stewart, directors of Belize Natural Energy and the subject of our cover story.

After attending an eye-opening seminar in 2002, Susan Morrice understood how to harness her inner creative force and put it to work building an energy company that would

Martin Ashcroft

transform the country of Belize and eventually the Central and South American region. Josh Stewart attended a similar seminar a year or so later and founded XJet, with a mission to make it the best aviation company in the world for the private jet set.

Theirs is a unique story of the power that all human beings have to unlock the potential of our own inner energy and make it work for us. Surely though, it’s just about their ability to become high achievers, isn’t it? Not at all, Susan insists. “We’re not extraordinary people but we have achieved extraordinary things,” she said to me. “The message for your readers is that they can be all they want to be. We all have extraordinary capacity if we can release it.”

Her answer is profound and slightly mysterious – mystical, almost. As if there’s something she knows about energy that I don’t, yet. But it fits with what we know about the physics of energy. The energy is there in us. We can’t create it, we can’t destroy it. It’s what we do with it that counts.

It remains only for me to wish our readers a very merry Christmas, and for those who don’t celebrate Christmas, bless you anyway for reading our magazine!

•

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3

Contents Page 18

Belize Natural Energy: Forces of nature

3

The Editor: The energy within

30

Belize Jungle Dome

7

News in brief

41

Decline of the global village

9

IMI container weighing guide from Marsden

44

Maersk Oil: Developing North Sea fields

11

News from the Port of Rotterdam

50

William Eagles: Pressure regulating hydrant range

13

Ineos completes acquisition of UK North Sea gas fields

56

Waterfall Security Systems: Defence against cyber pirates

15

Lion Oil awarded $72 million compensation

68

A&P: Engineering excellence

17

Phase out of R-22 refrigerant

76

Hyundai Heavy Industries: The happy heavyweight

18

Belize Natural Energy: Forces of nature

88

Eni: A major integrated energy company

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Belize Jungle Dome

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• News & features

News in Brief Suretank, the world’s largest manufacturer of tanks and cargocarrying units for offshore oil and gas, has signed a four year deal with Halliburton to supply all of its offshore equipment in Latin America. Suretank Latin America, based in Caxias do Sul in southern Brazil, offers the complete product range from drilling to well workover, oil production and offshore catering. The recent acquisition of Prior Diesel has expanded its product line to include specialist wireline equipment. * * *

UK-based equipment sales and hire specialist HTL Group has opened a branch in Australia. Based in Perth, HTL Australasia will serve a range of industry sectors including oil & gas, power generation, renewable energy, subsea & decommissioning, petrochemical and heavy engineering, providing controlled bolting equipment, flange working tools and portable machine solutions for hire and sale, as well joint integrity software and added value services such as calibration and ECITB approved training. * * * International Petroleum (IP) Week 2016, organised by the Energy Institute, will be the first major international oil and gas conference held after the UN Climate Change Conference (COP21).

The second day of the IP Week programme, Wednesday 10 February, will commence with a conference to discuss ‘Energy in a carbon constrained world’ with a keynote address from Bob Dudley, Group Chief Executive, BP, on how the industry should respond to climate change challenges. * * * China’s apparent oil demand rose 7.9% in October from a year earlier to 10.97 million barrels per day (b/d), according to the Platts China Oil Analytics report on the latest Chinese government data.

Growth was driven by rising demand for gasoline, jet fuel/kerosene, liquefied petroleum gas (LPG) and fuel oil.

During the first ten months of this year, China’s total apparent oil demand averaged 11.11 million b/d, an increase of 7.5% from the same period of 2014.

US proved oil and natural gas reserves still on the rise

US

the Marcellus Shale play. Texas added 8 tcf of natural gas proved reserves, mostly from the Eagle Ford Shale play and natural gas associated with the state’s gain in oil reserves in the Permian Basin. Natural gas from shale formations was 51% of the US total of natural gas proved reserves in 2014.

US production of both oil and natural gas increased in 2014. Production of crude oil and lease condensate increased about 17% (rising from 7.4 to 8.7 million barrels per day), while US production of natural gas increased 6% (rising from approximately 73 to 77 billion cubic feet per day).

Sustained lower prices for crude oil and natural gas in 2015 have curtailed oil and natural gas drilling, however, and have reduced operating economics, a combination which is anticipated to reduce end-of-year 2015 oil and natural gas reserves.

US Crude Oil and Natural Gas Proved Reserves, 2014 is available at: http://www.eia.gov/naturalgas/ crudeoilnaturalgasreserves.

crude oil proved reserves increased in 2014 for the sixth year in a row with a net addition of 3.4 billion barrels of proved oil reserves (a 9% increase), according to US Crude Oil and Natural Gas Proved Reserves, 2014, released by the US Energy Information Administration (EIA). US natural gas proved reserves increased 10% in 2014, raising the US total to a record 388.8 trillion cubic feet (Tcf).

At the state level, Texas had the largest increase in proved reserves in 2014, with 2,054 million barrels (60% of the nation’s total net increase). Most of these new oil reserves were added in the Texas portion of the Permian Basin and the Eagle Ford Shale play. North Dakota had the second-largest increase—a net gain of 362 million barrels—most of which were added in the Bakken tight oil play of the Williston Basin.

Pennsylvania added 10.4 trillion cubic feet of natural gas proved reserves (the largest net increase for any state in 2014) driven by continued development of

With no commercial hijacking reported since 2012, the Indian Ocean piracy high-risk area (HRA) has been reduced by roughly a half. Global security risk and crisis management specialists, Eos Risk Group, reports that illegal overfishing by foreign countries in Somali waters - an original factor in the criminal surge - has been increasing again, however, and that a bleak economic outlook on shore could lead to a resurgence in Somali piracy.

Meanwhile piracy is at a 12 year high along key shipping routes in South East Asia, with 204 attacks and 13 hijackings recorded in the region already this year. Experts have struggled to explain this rapid growth, and warned that the efforts applied to reduce piracy in Somalia might be harder to replicate here.

•

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Keeping you

connected at sea

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• News & features

I

Marsden issues guide to IMO container weighing ruling

ndustrial scales manufacturer Marsden Group has responded to the forthcoming International Maritime Organization (IMO) container weighing legislation by publishing a guide for freight forwarders, distributors and shipping agents.

Announced in 2014, the IMO container weighing ruling follows numerous accidents at sea as a result of mis-declared and overloaded containers – the most notable being the break up of the MSC Napoli just off the south coast of England in 2007. From 1 July 2016, containers will not be loaded onto a ship without an accredited proof of weight.

Container Weighing: A guide to the 2016 IMO Shipping Ruling covers the reasons and the impetus behind the announcement, what it means for exporters, and how containers can be weighed prior to reaching port.

Written by Marsden’s Marketing team after discovering there was still

Tanker shipping rates are expected to decline from current highs in 2016 as the trade in crude oil is forecast to decline due to ample stocking, and the fleet is expected to expand briskly, according to the latest edition of the Tanker Forecaster, published by global shipping consultancy Drewry.

Freight rates in the crude tanker

some confusion within the industry as to how the legislation was going to be met, the guide includes contributions from several members of the freight and shipping industry. Rachael White of the International Cargo Handling Coordination Association (ICHCA), Don Armour of the Freight

“Container weighing will need to be carried out by an accredited weigher, by suitable, calibrated equipment” Transport Association (FTA), Joe Nalty of JN Export and Andy Johnson of SantaFeRelo have all provided information, thoughts and insight.

“As an industrial weighing scales manufacturer of 90 years, we feel we have a certain responsibility to the

market have been high because of the buoyant crude oil trade and a rise in floating storage. Rates in the product tanker market have also surged despite a strong growth in the fleet, as many product tankers moved into the crude oil market. High rates in the tanker market continued to attract a number of swing chemical/oil carriers into the products

shipping industry now,” said Richard Black, Managing Director at Marsden Group. “We hope our expertise, and the expertise of those who have helped us create this white paper, will be of great benefit to anyone unsure of how they’re going to meet the new legislation.”

Marsden’s Marketing Manager David Smith added: “Container weighing will need to be carried out by an accredited weigher, by suitable, calibrated equipment. As well as providing information on how to become an accredited container weigher, we’re making sure our industrial scale offerings match the needs of the industry. We’re more than happy to help out where we can if anyone is unsure of the legislation and its stipulations.”

You can download Container Weighing: A guide to the 2016 IMO Shipping Ruling, at http://www. marsden-weighing.co.uk/index.php/ blog/the-imo-container-weighinglegislation-download-our-free-guide/

trade, while a number of bigger product tankers moved into the crude trade to benefit from higher earnings.

Stocking activity in both the crude and products sectors has increased substantially in recent times. This has led to a number of vessels serving as floating storage because land-based stowage was either full or too remote.

•

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• News & features

Port of Rotterdam launches startup accelerator

T

he Port of Rotterdam Authority, together with a group of internationally recognized partners, is launching a startup accelerator program, PortXL, contributing to its ambition to become the smartest port in the world.

“With PortXL we further strengthen the innovation ecosystem in our port and enable ourselves to scout startups,” says Paul Smits, CFO Port of Rotterdam.

“By connecting the startups with reputable companies, we introduce them to a vast network of industry experts. With this project we draw more innovative activity into the region and show what our world-class port has to offer. After all, innovation is crucial.

We want to be the smartest and most innovative port in the world.”

For this unique project, internationally recognized companies like EY, Cambridge Innovation Center / Venture

Cafe, Van Oord, Erasmus Centre for Entrepreneurship, Heineken, Innovation Quarter, Rabobank, Count. / First Dutch, Vopak, Damen, E.ON, Boskalis and the Port of Rotterdam have joined forces. Together they offer port-related startups a chance to kick-start their ideas during an intensive three months program.

“We want to be the smartest and most innovative port in the world” PortXL is an open innovation program in which ten exclusively selected startups are intensively coached to get their companies off the ground. They have access to a network of more than 150 mentors, more than 200 investors,

corporate partners and sponsors. The accelerator is focused on the portrelated industry.

“We will wholeheartedly support this programme, hoping that start-ups that are relevant to our business will emerge from it,” comments Damen CEO René Berkvens. “We will coach and supervise the Maritime Industries cluster, one of a total of four sectors, in addition to Transport & Logistics, Energy and the Petrochemical industry.

We will furthermore assess a number of start-ups ourselves. This will give us a better view of what drives future entrepreneurs and will provide close input about developments of potential interest to Damen Shipyards Group.

The most important element, however, is that through our participation we’re able to contribute to the continued development of the Dutch maritime industries.”

RH Marine Group introduced at Europort in Rotterdam RH Marine Group, formerly known as Imtech Marine, was introduced at the Europort exhibition in Rotterdam last month.

Following the recent acquisition by Parcom Capital and Pon Holdings, Imtech Marine will now be known as RH Marine Group.

Radio Holland, one of the founding companies, will keep its name but will have a new logo.

“The rich heritage of the founding companies, Van Rietschoten & Houwens, dating back to 1860, and Radio Holland dating back to 1916, played a key role in the new naming,” said René ten Brinke, CEO of RH Marine Group. “With both companies’ initials being RH, it made sense for us to integrate those letters into the new naming and implement a new, sharp and colourful branding for RH Marine Group, Radio Holland and RH Marine.

“Our fleet of brands including Radio Holland, RH Marine, Van Berge Henegouwen, Venteville, Techsol Marine, Elkon, Schiffbau-/ Dockbautechnik and Tess will all keep individual names and branding styles and focus on their key specialisms, technology expertise and target markets to deliver customised, flexible solutions which closely align with customers’ requirements. In a sense, this is a new start and we’re looking forward to the future.”

•

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• News & features

INEOS completes deal to acquire DEA UK North Sea gas fields

I

NEOS has completed the purchase of all of the UK North Sea gas fields owned by DEA Deutsche Erdoel AG, the German-based subsidiary of L1 Energy.

The platforms, infrastructure and the highly skilled team that runs them will form part of a new business to be called INEOS Breagh, based in London.

The transaction includes interests in the Breagh and Clipper South gas fields in the Southern North Sea. The annual production from the fields acquired in this deal account for 8% of the UK’s annual gas production, enough to heat one in ten British homes. The fields themselves are well positioned, close to INEOS’ assets in the North East and Scotland.

successful and experienced North Sea industry team,” said Geir Tuft, CEO of INEOS Breagh.

INEOS has recently announced its intention to become the leading UK player in onshore gas development and, as part of the company’s growing interest in energy production, is now evaluating additional opportunities offshore.

As part of the company’s ongoing strategic business planning, INEOS AG has set up a new oil and gas subsidiary and is working with a number of top class North Sea oil and gas professionals.

This group will continue to review potential opportunities in the North Sea to assess their suitability in the development of the business.

“We are pleased to have completed the deal to acquire this

“The transaction includes interests in the Breagh and Clipper South gas fields in the Southern North Sea” strong portfolio of natural gas assets and bring on board a highly •

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• News & features

Lion Oil awarded $72 million in insurance compensation for burst pipeline

I

n a stunning insurance coverage win in the energy sector, an Arkansas jury has awarded Lion Oil Co. $72 million in damages from lost income and expenses arising from a 2012 breach of a pipeline carrying oil from Louisiana production fields to a Lion refinery in Arkansas.

A team of lawyers from Pillsbury represented Lion Oil in the case, which was heard in federal court in the Western District of Arkansas. The jury delivered its verdict after deliberating for just two hours on 4 November.

Pillsbury’s trial team was led by Washington insurance recovery partner Geoffrey Greeves.

Lion was seeking coverage for business income losses and expenses resulting from the rupture of a critical crude oil supply pipeline built in 1956 and operated by Exxon-Mobile subsidiary EMPCo. The North Line pipeline carries some 440,000 barrels of oil more than 200 miles to reach the Lion refinery.

The rupture caused the pipeline to be shut down for 10 months, a period the insurers argued should not be covered.

Lion asserted that all-risk policies it had purchased from 14 different insurance companies should collectively cover the company for its massive business disruption while its refinery was forced to operate at a lower capacity and find alternative sources of crude oil.

The dry bulk shipping market is not expected to return to profitability before 2017, according to the Dry Bulk Forecaster report published by global shipping consultancy Drewry. Ship owners continue to struggle to recover their costs as commodity demand falls short of expectations. As a result ship owners continue to downsize their vessel holdings, which will enable oversupply to reduce over the next five years.

The second-hand market remains active, as owners with sound financial backing have acquired many vessels in distress sales. The global dry bulk fleet grew just 2% in the first nine months of 2015, reaching 773 million dwt.

On the demand side, the iron ore trade is forecast to grow at a moderate pace of 3-4% over the next few years, coal imports to China have slowed down and a rebound is not expected any time soon.

•

In their verdict, jurors awarded Lion Oil $60.4 million in income loss that was “dominantly, directly and efficiently caused by damage to EMPCo’s property.” An additional $11.3 million was given to cover the large amount of expenses incurred by Lion as a direct result of the damaged pipeline.

Pillsbury partner Peter Gillon, head of the firm’s insurance recovery practice who served as trial co-counsel, added: “Proving a company’s rights to insurance for damages to a supplier can be challenging, and we are pleased that both the jury and the court understood the way these policies are supposed to work and awarded our client the compensation they were owed.”

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• News & features

A

Phase out of R-22 refrigerant poses risks for shipowners

s a refrigerant widely used in vessels is gradually phased out around the world, Wilhelmsen Ships Service warns that shipowners face increasing risks in respect of price, supply and safety.

The refrigerant R-22 (chlorodifluoromethane or HCFC) is a colourless gas which has high ozone depletion and global warming potential, and is thought to be still in use on between 6,000 and 8,000 vessels worldwide.

It was outlawed throughout the EU in a process that ran from 2010 to 1 January 2015, and is currently being phased out in the US, where no new or imported R-22 will be permitted from 1 January 2020. As part of the Montreal Protocol, a UN agreement to protect the ozone layer, HCFC use will be phased out in all member countries by 2030.

“R-22 is a versatile and effective refrigerant gas that has served the shipping industry well, but it is fast

into countries, mis-declared and counterfeited. The consequences of this can be serious for vessels, catastrophic for equipment, with adulterated refrigerant causing poor mechanical performance and breakdown, and potentially deadly for individuals.”

On the latter point Jacobsen refers to the US, where the FBI has noted that some unapproved refrigerants contain propane, a highly flammable and explosive gas. The federal agency says that many of these substitutes are made in China and sold onwards on the black market.

“At the end of the day all vessels will have to find environmentally friendly alternatives to R-22,” says Jacobsen.

“In the meantime, those shipowners and operators that still require it must use reliable suppliers that can provide genuine refrigerant from approved producers. This is the only way to assure quality, standards of purity and worldwide compliance.”

In the countdown to the global ban WSS is providing the market with Unicool R-22 synthetic HCFC refrigerant, in areas where this is still permissible.

approaching the end of the line,” comments Svenn Jacobsen, Technical Product Manager, Refrigeration at Wilhelmsen Ships Service. “The compliance deadlines are approaching and this has, quite rightly, impacted tremendously on global production. As availability goes down price and supply risks go up, and this is potentially bad news for the owners of those remaining vessels that still use R-22.”

Industry figures indicate that legal global R-22 production this year will be only 10% of the volume produced in 1990. This weak supply and relatively strong demand will exert upward pressure on prices. If ships are slow to switch to ozone friendly refrigerant alternatives, says Jacobsen, costs “could easily double over the course of the next year.” This creates new risks.

“When prices increase and/or availability shrinks, alternative and illegally produced products suddenly start appearing on the market,” he says.

“This is happening already, and will only increase with demand.

“Gases are being smuggled

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Forces of nature The development of the oil industry in Belize has all the ingredients of a modern day fairy tale. Martin Ashcroft gets an insight into energy from Susan Morrice, Josh Stewart and Dr. Gilbert H. Canton of Belize Natural Energy •

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• Belize Natural Energy

W

ith the initial discovery of oil in their country a little over ten years ago, followed by the ambitious but realisable vision to become the major energy solution in Central and South America, not to mention a unique trade partnership with the United Arab Emirates, the people of Belize must feel like all their dreams are coming true.

To save you looking it up, let me explain that Belize is a country on the Atlantic side of Central America, bordered on the north by Mexico, on the south and west by Guatemala, and on the east by the Caribbean Sea. Remember this, for its position is one of its key advantages. It’s the only country in Central America whose official language is English, but it has a diverse society with many other cultures and languages, including Mayan, Creole, Hispanic, African and German Mennonite.

When Belize gained its independence from Great Britain in 1981, the economy of the former crown colony of British Honduras was largely agricultural. It may well have continued so to this day had it not been for the combination of a unique

group of people and circumstances.

The main early protagonists are geologist Susan Morrice, originally from Northern Ireland but who relocated to Denver, Colorado, and Mike Usher, a native Belizean with a strong desire to transform his country. Both had an unshakeable belief that there was oil to be found there.

Usher’s dream

These two forces first came together in 1988. Morrice had been trying to find oil in Belize for a year or two already, having been invited there by legendary industry figure Sir Ian Rankin.

She had done her research and the science had told her there had to be oil there. It didn’t take her long to fall in love with the country and its people, but five million dollars later, she had found no more oil than the major companies before her who had spent $450 million between them drilling 50 dry wells before taking their bits home.

Mike Usher was not a geologist, but he had always believed there was oil in Belize and that finding it would transform his country. He talked about his dream to anyone who would listen, and Susan Morrice was listening. They searched for oil together in pursuit of Usher’s dream for 15 years but continued to find nothing until another ingredient was added to their mix – the ‘mind technology’ and holistic business model they learned in an Educo seminar (Latin for ‘to draw out from within’).

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“I was interested in finding out why some people achieve so much and others achieve nothing,” Morrice tells me. “Then I found this course and was surprised to discover it was run by an Irishman called Tony Quinn. Mike and I took the course in January 2002 and two weeks after finishing, along with others who had also completed the same course, set up Belize Natural Energy.”

You might call the Morrice/ Usher/ Educo combination an example of ‘serendipity’, were it not for the implication of luck the word carries. There has to be more to it than that.

This partnership soon became a force of nature and ‘natural energy’ was an inspired choice of words for the company’s name.

“I realized that our dream and commitment to the people of Belize was a key component to a successful oil discovery. That understanding of how our minds work was the turning point for me” Oil and gas are natural resources that can be converted into energy to power our machinery, drive our cars and keep our lights on. The science behind those processes is pretty well known, but human beings run on energy, too, and science

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is not so good at understanding that. One day we can wake up feeling on top of the world, but the next we’re grumpy and dispirited. Excepting hangovers and sleeping pills, what affects our energy levels like this? What is this force that drives us today but abandons us tomorrow?

Susan Morrice discovered something about this force, this ‘natural energy’, at the Educo seminar she attended in 2002.

“I knew a lot about geology at the time,” she tells me, “but I didn’t know much about people, how our minds work and the creative force we all have inside us. It was not until I took part in the Educo seminar that I realized that our dream and commitment to the people of Belize was a key component to a successful oil discovery. That understanding of how our minds work was the turning point for me.”

The first thing the new company needed was capital, but the oil industry was reluctant to pour good money after bad into a country that had refused to yield any commercial discoveries in 50 years of drilling. So Morrice tapped into another source, people who had attended Educo seminars, who understood about the dream and the creative force and the can-do spirit.

An initial investor group came together that included over 75 members, mostly from Ireland, the UK, the United States and Belize itself.

“We presented a business model to the government of Belize that offered a triple-win partnership,” she says. “Tax revenues generated from the oil would help the government balance its budget and deal with mounting debt. A separate stream of funds would be set aside to create a trust dedicated to helping people help themselves in the areas of education and social environment, and finally, the investors in BNE would be able to realize a fair return.”

The government granted BNE an onshore license for almost

• Belize Natural Energy

“I was interested in finding out why some people achieve so much and others achieve nothing” 470,000 acres, but the company had only enough capital to drill two wells. “Somewhere in this vast acreage,” Morrice remembers, “we were going to have to choose where to drill two 20-inch, 4,000-foot-deep holes and hope to find oil.”

In terms of odds, it was harder than finding a needle in a haystack, but they found it in the first well they drilled. I would hate to have to calculate the probability of that first crude discovery!

Sadly, Mike Usher did not live to see his dream come true. He died, aged 52, on 24 June 2004. Was it just coincidence, then, that BNE made its first discovery of light crude at Spanish Lookout on 24 June 2005, the first anniversary of his death?

Naturally, the well was named Mike Usher #1. There are now ten producing wells named after him, and another promising discovery was made in 2007 at the Never Delay site, which was declared commercial in November 2009.

As the company grew, BNE attracted another force of nature in September 2006 when Belizean engineer Gilbert H. Canton agreed to become CEO. Through his phenomenal commitment to the company’s vision he has emerged as an inspirational and effective business leader.

Within three years of its founding, BNE became the single largest contributor to the government’s tax revenues, fulfilling the first win in the business plan. The second was realized in March 2009 with the launch of the Belize Natural Energy Trust, which has subsequently built and furnished a public library and classrooms in different areas of the country, and partnered with volunteers to develop youth camps and other training programs.

There was no oil and gas infrastructure or skilled labour in Belize in 2005, but Belizeans showed their entrepreneurial spirit by turning up in their own trucks to transport the crude from the Mennonite agricultural community in Spanish Lookout in the west of the country, over the Maya Mountains to the Big Creek Banana Port for export to the US Gulf coast.

What usually takes over three years to bring to market took less than three months, and BNE was able to transport its first crude out of the country in record time.

BNE has employed over 300 people and maintains its holistic business model by sending all its recruits on an Educo seminar. Every employee is thus aligned with the vision of the company’s founders. The workforce is 98 per cent Belizean and •

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“On 1 October 2015 Belize and the United Arab Emirates signed a bilateral trade agreement that will bring investment into Belize from the UAE”

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• Belize Natural Energy

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“I’d been travelling throughout Africa for 15 years wondering about the meaning of life, wanting to know what the ‘more’ was” they are all energized by this project. When other people talk about going the extra mile, at BNE they call it ‘extraness’.

Jet energy

To bring you up to date with recent developments, we need to introduce a new force; Josh Stewart, cousin of Susan Morrice, founder and president of international aviation business XJet with operations in Denver, London and Dubai, and now a fellow director of Belize Natural Energy.

Stewart had an early passion for travel and flying, eventually finding his way to Africa where he spent eight years flying a range of aircraft, looking at first for the perfect job and then dreaming of starting his own company. “Something was always missing,” he says. “I’d been travelling throughout Africa for 10 years wondering about the meaning of life, wanting to know what the ‘more’ was.”

Susan suggested he take the same course she had been on, and while he was there he visualised exactly the nature of the company he wanted to create. “I went out there with a loosey goosey dream with my energies all over the place and by using the Educo system, I came home with a rock solid crystal clear invincible vision,” he tells me.

Ten years later, XJet has grown into a world leader in services for private aviation, so how much did Stewart really see at the seminar? “It was pretty amazing,” he remembers.

“It was the first time I actually understood how the mind works. I had a clear vision of a company I could be proud of that would be No 1 in the Americas and then No 1 in the world. Lots of the vision has been realized, much of it bigger than I could ever imagine and the best is yet to come, but one thing is for sure - I was certainty itself when I came off that seminar. There was no doubt about it. With those tools and 28

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understanding I was able to super-focus on my clear, invincible vision – to build the world’s finest private aviation company – XJet.” Stewart founded XJet in Denver, Colorado in 2004, using the same Educo model but exactly how his vision was realized is a subject begging for another article, so I’ll leave it there in the hangar for the time being. Suffice it to say, however, that his joining the board of BNE was a natural next step for all concerned.

2020 Vision

Stewart’s role in BNE is all about investment, and he is perfectly placed to introduce the high-level investment network he has developed through XJet in the Middle East, Europe and the USA, to the opportunities being created as Belize pursues its dream to become the regional energy solution for the Caribbean, Central and South America.

On 1 October 2015 Belize and the United Arab Emirates signed a bilateral trade agreement that will bring investment into Belize from the UAE. It’s not an association you could have predicted without knowing about XJet and the critical role Josh Stewart played in the transaction, but it does have its own synergies beyond that connection.

Belize shares a similar vision as the UAE’s founding father, the late Sheikh Zayed, who believed that the discovery of oil was just the start of an economic success story for his country.

BNE believes that Belize can emulate in its own region the achievements of UAE in the Middle East, assisted by the financial backing and experience of the Emirates.

“The 2020 vision is about becoming the Central American and regional energy solution,” explains Stewart. “Belize is perfectly positioned geopolitically between the United States,

• Belize Natural Energy

“The 2020 vision is about becoming the Central American and regional energy solution.

Belize is perfectly positioned between the United States, South America and the Caricom to facilitate being the region’s major energy player” South America and the Caricom (Caribbean Community and Common Market - an organization of 15 Caribbean nations to promote economic integration) to facilitate being the regional central energy player. The key ingredient, however, is the Educo BNE model and together they form the perfect platform to bring the 2020 vision into reality.”

The UAE agreement wouldn’t have happened without the connections that Stewart has made in the Middle East, nor without the growing global recognition of the model itself.

“However, it is critical to realize that the BNE team is 98% Belizeans and that they have undergone unique training in the vision and are a major aligned force propelling us towards this outcome.”

But why would the UAE be interested in Belize? “The UAE has been incredibly successful in its diversification strategy,” explains Stewart. “They have a deep global investment platform but they have not had a strong presence in South and Central America for a number of years. Belize can be a great facilitator for that. The UAE gets an opportunity to move into the region through a company that’s incredibly well established in a country that’s very well positioned.”

BNE’s chief executive, Dr. Gilbert H. Canton, sums up the company’s achievements and sets out the stage for the realisation of the next vision. “BNE has established itself as a Belizean company with world class standards,” he says, “and has achieved rapid success by focusing first on developing its human potential – its people. BNE’s achievements include winning many local and global awards but most important to us is the appreciation that we have made a difference in their everyday lives that is conveyed to us by many Belizeans.

“We firmly believe that this evolution to the premier oil and gas producer in Central America is rooted on the institution

of a company culture that mines human potential and underscores social and environmental responsibility in our practices and procedures.”

The vision for 2020 involves growing BNE’s upstream and downstream oil and gas portfolio and expansion into power generation and other unique investment opportunities. To achieve it, BNE and Belize will need help from the forces of nature. The investment potential of the UAE represents the scientific side of the project, and Belizeans themselves will provide the human energy.

“As our employees embrace the new vision they become partners in working to achieve this big goal,” concludes Canton. “This is the main ingredient to BNE’s success. We invite you to ‘know the vision, no division’.”

www.susanmorrice.com

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Belize Jungle Dome From Premier League to Jungle Lodge Often called Mother Nature’s best kept secret, Belize is growing its reputation as a tourist destination. Former Premier League footballer Andy Hunt tells Martin Ashcroft how he became involved in adventure holidays •

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Andy Hunt celebrates scoring against Fulham

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• Belize Jungle Dome

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hile the protagonists in our cover story on Belize Natural Energy focus on becoming the major energy player in the South and Central American region, Andy and Simone Hunt have no such ambitions.

The Hunts run Green Dragon Adventure Travel, organising tailor-made, allinclusive vacation packages in Belize.

They also take guests at their own resort, the Belize Jungle Dome. “BNE’s office is in Belmopan,” says Andy, “which is 15 minutes down the road. Some of their visitors have stayed here.”

In case you have yet to read our cover story, Belize is the former colony of British Honduras, which gained its independence from the Crown in 1981. It sits on the Caribbean coast of Central America with the Yucatan peninsular of Mexico to the north and Guatemala to the west and south.

So how did a former professional footballer and an MTV presenter get into the Jungle Adventure business? It wasn’t something they had planned to do, by any means, but they were well placed to take advantage of the opportunity when it arose.

Andy Hunt played professional football in England for ten years (OK, soccer, if you prefer) with considerable success.

He started in non-league football for King’s Lynn Town, and while there he began a college course in business and tourism management. His career took him to Newcastle United and West Bromwich Albion, where he continued his studies. “I did four years of business management and tourism at college in Kings Lynn in my early years as a footballer. When I went to West Brom I encouraged some of the lads to do some more college work because not many footballers do. I did another two years there so I’m now doing what I was trained to do at college.” It’s great having your own place and making your own decisions, he observes. “I had enough of being shouted at on the football pitch for ten years.”

The luckiest footballers carry on playing until Father Time invites them to hang up their boots. Others have retirement forced on them by injury or illness. Hunt’s career came to an end in the 2000/2001 season. He had moved to Charlton Athletic by then, and had been top scorer when they won promotion to the Premier League.

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“We bought a lovely piece of land in the middle of the country,” says Andy, “and we now have a resort with half a dozen rooms and a swimming pool, a pool-side dining area and a tree-top café.”

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and he was diagnosed with glandular fever, a flu-like viral condition characterised by fever and extreme tiredness. Over the course of the year, when the tiredness did not improve, the diagnosis changed to chronic fatigue syndrome, a debilitating illness which is still not well understood.

“I played for a year with it,” says Andy, “and funnily enough, it coincided with our promotion season and my best season personally, but I was tired and sleeping all the time and I didn’t really train much. I took the summer off and I started the next season in the Premier League with Charlton.

We had a great start. I scored four goals in eight games and we were near the top of the league. I thought I’d got over the illness but then it just hit me again. There’s a lot of research being done but no-one knows yet what the cause or the cure is for it.”

When he finished playing, he says, he just wanted to go somewhere warm and take some time off. “When I retired I was looking for somewhere to relax for a little while,” he says.

“We came across Belize and liked it.”

Belize has the advantage of being an English speaking country (the only one in Central America) and property was cheaper there than in the Caribbean Islands. “I bought some land here for a fraction of the price of the house I sold in London. If you want to go somewhere fast paced and trendy, you pay for it.” The British heritage was part of the attraction of checking out Belize, but it hasn’t been a crucial factor

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• Belize Jungle Dome

since, he says. “You don’t get any advantage from being English here apart from the language.”

The Hunts had no plans at first to run a hotel or a travel business. It just gradually happened. “We bought a lovely piece of land in the middle of the country,” says Andy, “and we now have a resort with half a dozen rooms and a swimming pool, a pool-side dining area and a tree-top café.”

All the rooms have air conditioning, comfortable beds, flat screen TVs, coffee makers and mini-bars, ceiling fans and wireless internet. There are five room options, all with poolside terraces, making for versatile accommodation to cater for families, couples, individuals or small groups. Home cooked meals are served on the pool-side terrace, using organic herbs, vegetables and fruits from the garden.

Happy to be playing a role in the adventure travel business, Andy and Simone are proud of what they have achieved, but have no desire to build a tourist empire. When we spoke, they had just returned from a weekend in the beach resort of Hopkins. As soon as something opens there, Andy comments, the owners are looking at what they can build next. The air is thick with growth strategies and expansion plans. The Hunts are not driven by this fever.

“We do well enough out of what we have,” says Andy. “Simone was a presenter on MTV for ten years so we were both lucky enough to do well in our careers. Then afterwards we decided to enjoy it. We’re quite content. Our main focus is the quality of life. We keep improving things and we keep making the lodge nicer. We make it better all the time but it’s not a growth thing. We’re not into expansion plans. A lot of people don’t understand that.“ The best time to visit Belize is from December to April,” says Andy. “The weather is cooler then, like an English summer. The

rainy season is from June to November. It gets hot here from April onwards.”

Belize has many attractions, and people visit for many different reasons. Andy and Simone are committed to making sure everyone has a good time, by organising travel events from horse riding to kayaking, cave tubing, reef diving, snorkelling, fishing, you name it. If you are interested in archaeology, Belize has several Mayan sites. Local tour guides are trained by a Mayan archaeologist, so their knowledge of the sites and the surrounding area is second-to-none. Boat trips on the Belize River start from the Lodge, with a tour guide pointing out the birds, iguanas, crocodiles and other creatures that inhabit the river.

Belize boasts one of the largest and most intact Barrier Reef systems in the world, and there are tropical islands to explore.

“The reefs are absolutely stunning,” says Andy. “There’s a lot of work going on to protect them, with natural heritage sites. The diving and snorkelling and fishing are fantastic, too. They’re big attractions. The islands and the coast line are beautiful. This is a very pretty country.

BELIZE JUNGLE DOME •

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I

ARTS CULTURE

bne November 2015

Let me introduce you to QuERI How can we use QuERI? We are in a transitional period for world trade and for the energy industry from a long period of sustained global growth into a longer period now of uncertainty and incredible structural and technological changes.

What does QuERI include?

Using 72 country specific hybrid IO models, changes in supply and demand for intermediate and final products drives demand for oil, gas, and worldwide transportation.

The collapse of the price of energy from highs of over $100 a barrel to new lows has been brought about by these shifts in both supply and demand balances.

World trade in minerals and manufactures declined significantly in 2015. Forecasting in this environment depends upon understanding the complexity of factors driving demand for individual products.

QuERI models offer more detail on more industries than models commercially available from other vendors.

Global bilateral trade and transport models are also available.

QuERI’s integrated approach to global modelling takes into account changing technologies models based on a stage of economic development approach.

Covering more than 400 commodities including the following of importance to the oil, gas and related industries, QuERI forecasts of market demand, production, and trade are the most detailed from any vendor.

ISIC3 Aggregates

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Mining and Quarrying

Oil and gas extraction Iron ore mining Copper, nickel, lead and zinc mining

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Petroleum refineries Asphalt paving mixture and block manufacturing Asphalt shingle and coating materials manufacturing Petroleum lubricating oil and grease manufacturing All other petroleum and coal products manufacturing

Chemical Products

Petrochemical manufacturing Other basic organic chemical manufacturing Plastics material and resin manufacturing Synthetic rubber manufacturing Artificial and synthetic fibers and filaments manufacturing Fertilizer manufacturing Pesticide and other agricultural chemical manufacturing

Intermediate Materials

Plastics packaging materials and unlaminated film and sheet manufacturing Unlaminated plastics profile shape manufacturing Plastics pipe and pipe fitting manufacturing

Utilities

Electric power generation transmission and distribution Natural gas distribution

Transportation Services

Air transportation, rail transportation, water transportation, truck transportation Transit and ground passenger transportation Pipeline transportation Scenic and sightseeing transportation and support activities for transportation Postal service Couriers and messengers Warehousing and storage

For further details please contact jmin@queridata.com

• Globalization

Decline of the global village Globalization has run its course, says Dr David Blond…but what comes next?

G

lobal Trade collapsed in 2015 as European recession worries and a significant devaluation of the euro led to a sudden drop in nominal European trade, having a negative impact on the worldwide trading system. The combination of euro fatigue with the long, drawn out crisis in Southern Europe after the financial crisis and the continued retrenchment in country after country – from Asia to Latin America – has left the world trading system in a state of crisis.

Globalization, the panacea for the failure of countries to internalize development, has run its course. The opposition to the TPP (Trans-Pacific Partnership) and the counterpart agreement being forged across the North Atlantic, is due to the apparent failure of globalization to raise all boats evenly.

Economists bear much of the blame for the failure of the system to produce the kind of results promised. The economics profession, ever since the emergence of imbalances in global

trade, has tried to brush these “issues” under the rug. They argue that the market system of checks and balances will eventually right the imbalances. But they ignore the damage done as we wait patiently for the correction. Technological and capital obsolescence means that as factories in one country or area of the world close and are replaced with imports, the lost trade rarely returns even after wages have been pushed down to below economic sustainability.

Major imbalances in world trade with just a few countries running surpluses – China, Japan, Germany and the OPEC countries of the Middle East – with most others running sizable or just niggling deficits, has led to the crisis in Europe with the euro. Countries like Spain, Portugal and Greece, dependent as they are on tourism for much of their income and employment, needed flexible exchange rates to reign in imports (thus promoting domestic production of competing •

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• Globalization

goods). Without that ability, vacationing in Greece became as expensive as vacationing in Germany, so German tourists went farther afield to find warm weather, cheap food and lodging.

The financial crisis in 2008 came at a time of massive global imbalances due, in part, to the euro allowing debtor countries to run up large and unsupported real trade deficits. Imbalances destabilized domestic industries, increased unemployment and made bankers nervous as imbalances indicated weak economies and bad credit risks. Governments facing rising unemployment borrowed against future prosperity, making it difficult to contemplate leaving the euro zone as the borrowed money would have to be paid back with devalued currencies adding to the outstanding debt.

In short, European policies had turned what was a good idea – targets for debt to GDP as well as other rules – into time bombs that forced austerity on economies already weakened by the collapse of global confidence. The northern-dominated Central Bank chose to promote austerity as the general policy rather than stick to Keynesian style pump priming. The result has been to prolong the recession, making any uptick a signal to the Bank to either raise rates or push for more austerity in the debtor countries. With the change in leadership in the bank from German-Dutch to Italian, the European Central Bank began, belatedly, to purchase the non-performing debt in hope of rekindling the European economy. One result was a collapse in the value of the euro that had remained relatively strong throughout the crisis. As a result, when coupled with a global slow down starting in 2013 and continuing today, world trade measured in US dollar terms declined dramatically with the full effects of the downturn felt at the end of 2014 and on into 2015.

QuERI’s internalized estimates of world GDP are based on a combination of EIU (Economist Intelligence Unit) estimates for the next ten years with model-determined demand and supply side measures of output. These are internalized in a

cross-country model along with other factors – trade, prices, and employment – to produce independent forecasts for GDP, private consumption, government spending, and international trade. These are based on dynamic models that integrate production and consumption through input-output models.

The QuERI approach is dynamic and bottom-up and possibly the most sophisticated data driven model available from any company or government agency.

Global output or production equalled $154 trillion in 2015.

Growth has closely followed global GDP, but diverges during periods of extreme stress in the world trading system. Output growth in 2015 is expected to be close to zero, but GDP growth will be higher as it relies upon value-added, measured by continuing growth in demand. We approximate our GDP estimates by using a mixture of demand and supply determined GDP. As you can see in 2015 the supply-side GDP was near zero, while demand continued as people have to live, even if world output of factories, farms and services barely grows from the previous year.

World trade almost collapsed, both in nominal and real terms. We have tried to modify the extent of the decline because at least some of the trade is non-dollar denominated (inter-European trade) so that the nominal dollar declines which are larger are less when measured in real volumes.

Still, we can’t deny that 2015 was a turning point in the global trading system. We don’t expect future growth rates to approximate the high rates of the previous two decades, as more countries turn away from open borders towards more protection of domestic industries – both infant and mature.

Dr. David L Blond is President of Quantitative Economic Research International

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Maersk Oil:

Developing North Sea Fields Founded in 1962, Maersk Oil looks for long term growth opportunities to fulfil its ambition to become a top-five producer in the North Sea

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“Maersk Oil and partners’ £3 billion investment to develop the Culzean discovery is excellent news for the UK”

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• Maersk Oil

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n August this year Danish giant Maersk Oil was given the go ahead by the UK Oil & Gas Authority for the high pressure, high temperature (HPHT) Culzean field in the North Sea. The UK approval is an important milestone in the Culzean project, which is part of Maersk Oil’s ambition to become a top-five producer in the North Sea. Discovered in 2008 by Maersk Oil and its co-venturers, including JX Nippon, the gas condensate field has resources estimated at 250300 million barrels of oil equivalent.

Maersk Oil is looking for new long-term growth opportunities in the North Sea, investing heavily in projects and improving the efficiency of operations. Culzean is a natural gas field, which helps diversify the company’s oildominated portfolio. Production is expected to start in 2019 and continue for at least 13 years, with plateau production of 60,000-90,000 boe per day. It is the largest gas field sanctioned by the UK since East Brae in 1990, according to consultancy Wood Mackenzie.

“Culzean is an important development for the UK and also for Maersk Oil and our co-venturers. We are pleased the field will support UK economic growth as well as extend understanding of HPHT development,” said Maersk Oil CEO Jakob Thomasen. “Culzean is the latest in a series of large investments by Maersk Oil in Denmark, Norway and the UK – reflecting our commitment to the future of the North Sea region and diversifying Maersk Oil’s portfolio.”

Culzean

Maersk Oil and its co-venturers are investing around £3 billion in the Culzean development, with more than 50% committed to industrial investment in the UK. Over the projected life of the field, it is anticipated that £2.1billion in operating expenditure will also be spent in the UK domestic market. The field supports the UK’s transition to gas-fired electricity generation and is expected to support 6,000 UK jobs, and create more than 400 direct jobs.

The project benefits from the UK’s HPHT Cluster Area Allowance that supports the development of such projects – which typically have considerably higher capital costs – and encourages exploration and appraisal activity in the surrounding area. Maersk Oil UK is the operator of Culzean, with JX Nippon Exploration & Production (UK) Limited and BP (Britoil Ltd) its co-venturers.

The field is located around 145 miles east of Aberdeen.

Challenges associated with developing the Culzean reservoirs include temperatures of up to 175 degrees centigrade and high pressure that is equivalent to being 9 kilometres underwater, requiring specialised equipment that can handle the extreme conditions. This makes the project more capital intensive, hence the expected huge total investment of about £3 billion, of which Maersk Oil’s share is about half.

The North Sea region has an estimated potential of 26–38 billion barrels yet to be discovered, according to national oil agencies, and it remains a technically attractive province for future development, provided costs and regulatory regimes continue to attract investment. Maersk Oil has a share in Johan Sverdrup, one of Norway’s largest ever discoveries, and in the UK’s Golden Eagle, which started production in

2014. The Tyra Southeast expansion in Denmark has added production from a current asset. At plateau production, Culzean and these other projects will add about 90,000 boe/pd to Maersk Oil’s entitlement production.

“Sanction of this landmark project represents a major achievement and an exciting milestone for Maersk Oil UK,” said Morten Kelstrup, Maersk Oil UK managing director.

Andy Samuel, chief executive of the Oil & Gas Authority, said: “Maersk Oil and partners’ £3bn investment to develop the Culzean discovery is excellent news for the UK during a period when the decline in global oil prices has created difficult operating conditions for this critical sector of our economy.”

Johan Sverdrup

Culzean isn’t the only project Maersk Oil is investing heavily in. There is the ongoing development of the Norwegian field Johan Sverdrup, in which Maersk Oil is a partner. Johan Sverdrup is one of the five largest fields in Norway. In August this year the partners in the Johan Sverdrup development received the final approval from the Norwegian Ministry of Petroleum and Energy (MPE), of the plan for development and operation (PDO) for Phase 1 of Johan Sverdrup.

“We are proud to be part of the Johan Sverdrup partnership and see this project as a strong contributor to our overall North Sea portfolio of operations and developments over the coming years. The project is the biggest planned investment in the entire North Sea basin over the coming decade, illustrating that the basin still holds significant potential,” says Maersk CEO, Thomasen.

“With more than 50 years’ experience in the North Sea, Maersk Oil has a strong pedigree participating in phased developments similar to the Johan Sverdrup project. By applying the right technologies and capabilities, this important project will provide a significant contribution to Norwegian society for decades,” says Neil Cummine, managing director of Maersk Oil Norway.

Phase 1 of the Johan Sverdrup development, with an estimated capital expenditure of NOK 117 billion, consists of four bridge-linked platforms and three subsea water injection templates, and has a production capacity of 315,000-380,000 barrels of oil equivalent per day. First oil is planned for late 2019 and the expected recoverable resources are projected to be between 1.4 – 2.4 billion barrels of oil equivalent.

By approving the Unit Operating Agreement, the Norwegian Ministry of Petroleum and Energy has ruled the apportionment of the Johan Sverdrup field between the partners. For the full field development, capital expenditure is estimated at approximately NOK 170-220 billion (2015 •

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“Johan Sverdrup is the biggest planned investment in the entire North Sea basin over the coming decade”

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• Maersk Oil

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William Eagles launches super duplex pressure regulating hydrant range

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t is an exciting time for William Eagles due to its recent relocation in Manchester and launch of the Super Duplex pressure regulating hydrants.

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Wrekin Shell Group consists of Wrekin Shell Mouldings, Dynafluid, Gresswell Valves, and since February 2014 William Eagles.

Since acquisition the parent company Wrekin Shell Mouldings has brought the production of castings back in-house by installing an air set facility in its foundry at its Telford site.

Much of the original tooling has been reconditioned or remade from scratch to enhance quality and ease of manufacture and to enable it to cater for the vast array of customer requirements that can be specified for any particular valve e.g. different flange classes and outlet types. WSM has also invested in two new Mazak CNC Quick Turn Nexus lathes including a bar feed for the precision manufacture of its other valve components.

Following customer visits William Eagles recognised there was a demand for its product in super duplex stainless steel and titanium, especially relevant in the off shore sector. Super Duplex was requested due to its enhanced corrosion resistance compared to stainless steel 316. In order to fulfil an order from a major multinational oil company, William Eagles proceeded to lay down the necessary tooling to be able to supply its PRV6 pressure regulating hydrant in two configurations DN40 (1½”) ANSI150 and DN50 (2”) ANSI150. The hydrant valve was designed with a 2” BSP male threaded outlet to accommodate any international standard fire hose coupling.

The PRV6 pressure regulating hydrant is a member of the William Eagles 2½” nominal diameter high pressure balanced fire hydrant valves, in bib nosed format, suitable for both on and off shore applications.

For connection to a high pressure supply (up to 20 bar) the valve provides a constant reduced outlet pressure for fire fighting (which can be set in situ), irrespective of inlet pressure.

This enables a uniform fire fighting pressure to be maintained at any hydrant valve regardless of its location in the system e.g. off shore platform or different floors in a high rise building.

It also protects the fireman on the nozzle from any pressure surges in the system.

The PRV6 incorporates a high pressure override controlled by the hand wheel. In this mode the valve is mechanically

restrained to the fully open position and thus the valve acts as a conventional hydrant valve, allowing full system supply pressure through the outlet. William Eagles can also offer super duplex for its PRV4 pressure regulating hydrant, also bib nosed, but without the override function.

Charlotte Cooper Sales & Marketing Director for the Wrekin Shell Group commented “We would very much like to reestablish the William Eagles brand as the go-to name for fire fighting equipment and reinvigorate the product line up with the introduction of special materials. We want long standing customers to be aware that William Eagles is very much alive and well and hope to see it prosper at its new site.”

Please contact: Andy Sykes at the new William Eagles premises for further information, quoting OGSMAG in subject line.

Wrekin Shell Mouldings Ltd t/a WILLIAM EAGLES Units B/C, 84/86 North Stage, Broadway, Salford, Manchester. M50 2UW Tel: +44 (0) 161 876 1560 Fax +44 (0) 161 745 7765 Email: andy.sykes@william-eagles.co.uk

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“The Tyra Southeast extension is a great example of how we extract value from the Danish North Sea by combining intricate knowledge, long-term investments and the right technical capabilities”

value) with recoverable resources of between 1.7 and 3.0 billion barrels of oil equivalent and an expected plateau production of 550,000 to 650,000 barrels per day. The Maersk Oil share of the capital expenditure for phase 1 is US$1.8 billion.

Tyra Southeast

In April this year production started from the new unmanned platform Tyra Southeast-B. The platform is expected to add reserves of 50 million boe over the next 30 years to Danish production.

“The Tyra Southeast extension is a great example of how we extract value from the Danish North Sea by combining intricate knowledge, long-term investments and the right technical capabilities,” said Thomasen. “Over the next three decades, the new platform will add both oil and gas to our production. This is an important step in Maersk Oil’s growth journey and it demonstrates that Denmark 52

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continues to be a core area for us.”

The drilling of the first well commenced in December 2014 from the Ensco 72 drilling rig. From this well alone the production is expected to be 2,600 boe/pd. The plan is to drill a total of 8-12 horizontal wells during 2015-2017 with each well being about six kilometres long.

“We are excited to see first production which will contribute positively to Maersk Oil’s total volumes,” said Martin Rune Pedersen, managing director of Maersk Oil Danish Business Unit, the operator of the Danish Underground Consortium.

“The initial planning began four years ago, culminating with the final construction and installation mid-2014. In total, the Danish Underground Consortium has invested DKK 4.5 billion and it is exactly such investments that are needed to secure the future of Danish oil and gas production.”

The new platform, located 220 kilometres off Denmark’s west coast, will produce a mixture of oil and gas and is expected to deliver approximately 20 million barrels of oil and 170 billion

• Maersk Oil

standard cubic feet of gas, combined reserves and resources of 50 million boe, with peak production in 2017 of 20,000 boe/ pd. The total investment in the Tyra Southeast expansion of DKK 4.5 billion includes the platform with a total weight of 4,700 tonnes, pipelines and drilling of the wells.

With 3,200 employees, turning marginal and challenging fields into commercial successes has been the cornerstone of Maersk Oil’s business since the company was founded in 1962.

Maersk Oil developed groundbreaking technologies while working with tight chalk reservoirs in the Danish North Sea and enabled Denmark to become an oil and gas producing country. Later, the company deployed these technologies abroad and became an international player in the upstream business. Today, Maersk Oil operates some 625,000 barrels of oil equivalent per day, with production in Denmark, the UK, Qatar, Algeria, Brazil and Kazakhstan.

Exploration activities are ongoing in Angola, Norway, Greenland, Kurdistan, the US Gulf of Mexico and in the

producing countries. There is still huge potential value in the North Sea, and Maersk Oil aims to become a top-five producer, from its current rank of ninth. Projects like Culzean, Tyra SE and Johan Sverdrup showcase the opportunities.

As part of its long-term focus, the Maersk Group is working to develop sustainable solutions in all its businesses. It has taken significant steps in recent years to become an industry leader with regard to the environment, including substantial reductions in CO2 emissions. It is strongly committed to the safety of its people. In spite of difficult market conditions, Maersk Group aims for long-term profitable growth, combining focused innovation, a performance-based culture and a philosophy of constant care, to build and maintain leading positions in attractive industries and growth market.

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WATERFALL SECURITY SYSTEMS

DEFENCE AGAINST CYBER PIRATES Andrew Ginter, vice president of industrial security at Waterfall Security Solutions, helps Martin Ashcroft to appreciate the increasing threat of cyber attacks at sea, and how shipowners can protect their vessels •

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P

icture the scene. The ship has run aground in shallow water. It shouldn’t have been anywhere near the sandbank it’s resting on, but the crew were unable to control it. It’s now listing badly and valuable cargo is falling overboard. The mystified captain is muttering something. The camera zooms in on him and we listen.

“We must have been hacked,” he’s saying. “We must have been hacked.” If this were the opening scene of the next James Bond film, most of us would think it a perfectly credible incident – and we’d be right, because it is.

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Sabotage by cyber attack is the latest threat to governments and industries all over the world, and the shipping industry is no exception. We all have enemies, be they political, economic or simply plain criminal, and the more equipment we connect to one network or another, the more vulnerable we become.

Ships today are completely computerized. In our continued attempts to reduce costs by increasing efficiency, more and more functions are being automated or remotely controlled, and gigabytes of data are collected every day to help us monitor the performance of our equipment. Navigation is heavily automated. Equipment usage is monitored to reduce costs through predictive maintenance. Everything from vessel position, speed and heading to fuel usage, hull stress and engine condition are monitored automatically for use in advanced optimization and prediction algorithms. Everything is connected to the network, so we can see what’s going on and adjust it for optimum performance. Even the containers can be equipped with communications technology now, to give us 24/7 feedback on their comfort levels, from temperature to humidity to good vibrations. Systems can be fitted which remotely control and adjust the temperature of refrigerated containers.

Connectivity trade-off

“The more equipment we connect to one network or another, the more vulnerable we become”

The problem is, once we introduce connectivity into our operations to make it possible to interact remotely with a motion sensor in a container or, more importantly, a navigation device in a ship’s control network, we make it possible for someone else to interact with our equipment, too.

“The trade off between increased efficiency and increased vulnerability is one that businesses in many industries are failing to take into account,” says Andrew Ginter, VP industrial security, Waterfall Security Solutions. “We see the benefits more clearly than we see the risks.”

One barrier to understanding is visibility. The most visible attacks are common viruses, malware and attacks by insiders.

There’s a new generation of attackers out there now, though, who work hard at invisibility. Most victims have no idea they have been compromised until months after the fact, if ever.

A more subtle barrier is the difference between espionage and sabotage. Over the last five years most of the high-profile cyber attacks were espionage attacks – stealing information. The big risk to shipping is not espionage, however, but cyber sabotage.

“Most security practitioners are much more aware of espionage risks than sabotage risks,” says Ginter. “As a result we install security systems that are reasonably good at preventing the theft of data, but do little to prevent equipment damage, or worse. The prevention of cyber sabotage needs a different approach,” he stresses.

“Common wisdom has it that a control system can be secured with a firewall and a bit of encryption,” continues Ginter.

Unfortunately, there is more wishful thinking than wisdom here. “Firewalls forward messages between networks, and they do what they can to identify and eliminate attack messages, but no firewall is or can ever be perfect. All firewalls forward some attack messages into protected networks.”

In practice, all software can be hacked, Ginter explains, because all software has bugs, and many bugs are security vulnerabilities. “I wrote software for 25 years,” he says. “I did not deliberately put bugs into every piece of software I wrote, but every piece of software I wrote still had bugs.”

This is why intrusion detection is fundamental to defending •

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against cyber espionage. If every message through the firewall could contain an attack, and all software can be hacked, then intrusion detection is critical. We need to assume we will be compromised, we need to search out those compromised computers, and we need to erase those computers and restore them from clean backups.

From espionage to sabotage

This approach fails us in the world of cyber sabotage, however. We cannot take a grounded ship and “restore it from backup.” Fundamentally, intrusion detection takes time; recent studies show that it takes months to find the average intrusion. For all of that time, an invisible intruder has remote control of our vessel: falsifying data and misoperating equipment. This is unacceptable.

While reports of stolen bank details and credit card numbers are becoming commonplace on our TV news, we don’t hear so much about cyber attacks on infrastructure or industrial assets, but this doesn’t mean they’re not happening. If we were a multinational industry giant with 60

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customers all over the world, how likely would we be to admit that our security had been breached if we were not legally bound to disclose breaches?

Worse, attackers with no desire to be discovered are likely to disguise their interventions to look like random system failures, so their victims never know they were attacked.

“This is why we don’t hear about attacks,” confirms Ran Pedhazur, Waterfall’s VP of Business Development, “but if you look at surveys, 70 to 80 per cent of people say they have been compromised in the last 12 months and an even greater number expect to be compromised next year.”

Where have these threats come from? Why are attackers now starting to target infrastructure rather than data? There is an element of ‘because they can’ in there, as our headlong rush towards connectivity has made it possible for them to attack us, but the big question is about motive. What do they have to gain? There will always be terrorists with political motives and pirates with ransom demands, but the new breed of cyber attacker is more likely to be looking for an economic advantage over a rival, or to make a killing on the stock market. There has

“I wrote software for 25 years. I did not deliberately put bugs into every piece of software I wrote, but every piece of software I wrote still had bugs”

to be a profit motive.

It is generally accepted today that organised crime is behind the most visible attacks on home computers and corporate systems, because they have proven paths to profit from such attacks. “The average credit card number is worth 25 cents on the black market,” says Ginter. “The average bank account number and password is worth between a dollar and a hundred dollars, depending on how much money is in the account.

There’s a whole industry for laundering the money, and more recently, a whole industry has been developed around stealing corporate secrets. The question that people are asking now is, how soon will an industry be developed around simulating random failures on ships or at other industrial sites to manipulate markets, or for other profit motives? Many are also asking, is this happening already, silently?”

Ginter has an example from close to home that illustrates the potential threat very well. “I live in Alberta in Canada,” he says.

“A pipeline that used to send gasoline from east to west across the country was recently reversed and now sends crude oil back east for refining. Alberta now has local refiners that can provide us with gasoline. But in the middle of last summer, at the time of peak gasoline consumption, the biggest refinery in the region mysteriously went down. In spite of the worldwide collapse in oil prices, we were paying through the nose for gasoline.

“The refinery didn’t tell us why it went down,” he continues.

“It didn’t have to. News reports talked about some kind of equipment failure. But think about it - if someone broke into the refinery’s network and caused some equipment to fail without leaving obvious traces of cyber attack behind, and then went long on gasoline futures in our geography and made a killing on the commodities market, would anybody notice? These guys are very good at what they do. This kind of opportunity is something that if organised crime isn’t doing it today, we’re certainly worried about it happening in the future. These guys are professionals. They’re going to cover their tracks.

“So the question is, who profits when a ship is delayed by mechanical problems or computer problems with its navigational systems? Everything on the ship is delayed, so what’s on the vessel? Is it something that somebody can profit by? Can they go short on the shipping company or can they go short on the company that owns the goods? If goods are delayed it may affect someone’s profits for the quarter. This is the kind of thing that people are worried about. Where there’s opportunity, somebody is going to take advantage.”

Somebody took advantage in 2013 in an attack on the US retailer, Target, which resulted in costly court proceedings over the insurance claim, and incalculable damage to the company’s reputation. How did they do that? “This was a data theft attack, but the attackers used the same kind vulnerability that we see with control systems on ships and in every industry,” says Ginter. “They got into Target through a vendor. The attackers did not come after Target. They were just poking around, systematically breaking into one business after another to see what profit they could make. Then they broke into a vendor that provided Target with refrigeration and HVAC hardware and services. They stole remote access credentials from the refrigeration vendor and used them to log into Target. They didn’t have to break through the Target firewall – they just logged in like any other user. How many vendors have remote access to our ships?”

Security awareness and preparedness vary greatly according to geography, says Ginter. “In North America there are regulations in the power sector. If the bad guys want to target •

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the North American power sector they’re going to come up against NERC CIP [the North American Electric Reliability Corporation’s Critical Infrastructure Protection standards].

Now, NERC CIP is far from perfect, but it is much better than nothing. In much of the rest of the world, there is nothing.”

If you get your regulations right in the first place, compliance will bring best practices into play. The question though, is how can best practices become standard practices for industries that are not regulated? “I don’t see any rules emerging for the shipping industry,” says Ginter. “There’s no body that can enforce rules like that.”

There have already been attempted attacks on the US power grid by the terrorist organisation ISIS, though these initial attacks were described by authorities as “low capability” attacks. Attack capabilities can be purchased, however, and ISIS has money. “These simple attacks are going to become more sophisticated,” says Ginter. “All it takes is a little money for ISIS to buy world class attack capabilities to come after the grid, and they have plenty of money.”

Defense capabilities

While the next target depends on the specific motivation of the next cyber attacker, it would be a mistake to base our security defence on the likelihood of an attack. What’s 62

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unlikely today may be more likely tomorrow, but tomorrow may be too late to prevent the attack.

“Prudent security practitioners defend against well-known attack capabilities,” says Ginter. “They do not defend against the motive of the moment. They do not look around and say ‘how many ships were stranded last year in the middle of the ocean like this?’ Motives can change in a heartbeat. Somebody can suddenly get a bee in their bonnet and decide to come after us. Capabilities evolve much more slowly. So industrial sites today are looking at the capabilities in the threat environment and defending against them before someone develops a motive to use those capabilities against their sites.”

If our organization is lucky enough not to have been targeted by a cyber attacker yet, what approach to security are we going to take? Are we going to look at the statistics of ships being attacked in this way and respond according to our perception of likelihood, or are we going to put protections in place before serious harm is done?

For those looking for credible sabotage-oriented protection, there are solutions available. Waterfall Security Solutions is a cyber security specialist that produces hardware-enforced security products, focused on preventing the cyber sabotage of ICS (industrial control system) networks. The hardware part of the solution is called a unidirectional gateway.

“We have a family of products but our flagship product is the

“These silent, online, network-based attacks are the workhorse of cyber sabotage, and are the specific risk that comes with increased network connectivity.

Our gateways eliminate that specific threat vector entirely”

unidirectional gateway,” says Ginter. “The gateways enable safe network integration. The gateways let businesses monitor their control system equipment, but make it physically impossible to send any attack back in to those critical networks.

“We claim 100 per cent protection against network attacks coming from external networks,” he continues. “While there is no technology that can prevent absolutely all attacks, these silent, online, network-based attacks are the workhorse of cyber sabotage, and are the specific risk that comes with increased network connectivity. Our gateways eliminate that specific threat vector entirely.”

When a unidirectional gateway becomes the only connection between a more trusted network and a less trusted network, he explains, data travels only one way, so nothing gets back in to the ICS network. Waterfall makes the data available for anyone who needs it, by replicating industrial databases and devices.

“Anyone who wants the real-time data can ask the replicas and get the same answer they would have had by asking the live systems,” Ginter explains. “They get the same answer from the replica as the control system equipment would have given them, without ever sending a message to the control system and putting that equipment at risk.”

Waterfall Security Solutions produces a family of products that are based on or complement its unidirectional gateways.

The Waterfall FLIP is a kind of gateway that can reverse orientation on a schedule, to provide continuous monitoring and occasional batch updates of shipboard systems, such as security updates or weather forecasts. Inbound/outbound gateways can provide continuous updates of onboard systems through separate, independent replications, without ever introducing the kinds of attack paths that always come with firewalls. Application data control add-ons apply fine-grained policy-based controls to data in motion between networks.

All of these products frustrate modern, silent, remote-control cyber sabotage attack capabilities, as well as a host of older, more mundane attacks.

The 2015 Safety and Shipping Review by Allianz identified cyber sabotage attacks on shipping as “a major concern.”

Cyber sabotage attack capabilities have become much more sophisticated in the course of the last decade. Attackers use powerful software tools, and like all software, attack tools become more and more capable as new versions are released.

Basic security hygiene, such as firewalls, anti-virus systems, security updates, encryption and long passwords, provide little protection against modern attacks by criminals or ‘hacktivists’.

“In the shipping industry, we need to take inspiration from control system cyber security standards and regulations in other industries,” says Ginter. The French ANSSI standards for critical infrastructure protection prohibit firewalls at the boundaries of the most important control system networks, permitting only unidirectional gateways. The North American NERC CIP standards provide relief from one third of the security regulations when unidirectional gateways are used instead of firewalls at large power plants. The ISA, IEC, NIST and many other standards all position unidirectional gateways as stronger than firewall protections for control system security programs.

“We have a window of opportunity now, to protect the control systems and navigation systems on our vessels, before we start suffering very serious losses,” concludes Ginter. “Increased automation and connectivity brings increased opportunities and profits, but only if we address the risks.”

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Engineering Excellence A&P is a leading Marine Engineering Services and Fabrication Group providing tailormade solutions for customers in the Global Marine and Energy Sectors.

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perating from three strategic UK locations in Tyneside, Falmouth & Teesside with seven large scale drydocks and deep water berthing for vessels up to 100,000 tonnes we can accommodate the most demanding marine projects, ensuring costs and timeframes are kept to a minimum. Through our own adaptability and the expertise of our people we lead the way in the services we provide, delivering beyond our clients expectations.

Our two North East England facilities provide our customers with world class ship repair, conversion and fabrication services born out of expertise, market-strength and dedication to delivering complex projects. We provide robust, bespoke solutions and maintain a collaborative, open approach that inspires long-lasting and trusted partnerships with each of our clients. Having successfully delivered completed contracts including subsea structures into the UK North Sea Sector and projects off the coast of Africa A&P is the natural engineering and fabrication partner for the Oil & Gas sector. Gaining a successful history in achieving complex conversions of ships and offshore structures.

Our Clients range across the Oil & Gas, Renewables, MoD, and Commercial Shipping sectors. We are able to

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undertake specific conversions including O&M roles required for the deployment of offshore wind and marine renewable vessel applications. The major strength of the business is its personnel; both our workforce and sub-contractors are able to meet our customer’s demands on a genuine 7 day a week service.

The safety culture on our site is underpinned by proven procedures, which have enabled the yards to develop a good safety record.

The A&P Group Business is focused on delivering a safe, quality, cost effective and efficient service for all of our customers.

The Tyne yard boasts the largest commercial dry-dock on the east coast of England supplemented with two deep water berths and a significant modern fabrication facility complete with panel line, rolling, plasma complemented by a highly skilled and flexible workforce. There is extensive storage and load-out capability with fully equipped workshops covering all trades required to carry out projects from relatively simple ship repair to major complex ship conversions.

Located on one of the busiest rivers in the UK, our 5 acre Tees yard consists of two dry docks and 240m of jetty frontage.

With extensive workshop facilities, cranes up to 40 tonnes and a secure tank washing facility the Tees yard is considered a centre of excellence for offshore vessels, dredgers and tankers.

Among our customer base we boast a number of Oil Majors and their key contractors as well as the UK Ministry of Defence

• A&P and some well-known national and worldwide shipping groups. In addition to major marine projects our fabrication facilities lend themselves to building offshore modules, subsea structures, and new ship sections.Both yards have excellent transport links, with International airports within 20km of each yard, major mainline rail connections and ferry services to Europe all within easy reach.

A&P Fabrication has both the heritage and expertise to deliver complex, technically challenging marine infrastructure projects for the O&G sector.

Having successfully delivered completed contracts including subsea structures into the UK North Sea Sector and projects off the coast of Africa, A&P Fabrication is the natural engineering and fabrication partner for the Oil & Gas sector.

Typically our involvement has included: • Vessel mobilisation & demobilisation work for construction and installation activities • Major ship conversions for example FPSO / FSO deployment • Module fabrication • Subsea structure fabrication • Ship repair to the OSV market • Ship repair to the product tanker market A&P Falmouth located on the UK south west, part of the A&P Group, is a vital partner to local and visiting maritime interests and is able to deliver a unique service offering to rival any port around the globe. The port boasts one of the world’s largest natural deep-water harbours and is one of the largest shiprepair facilities in the UK, with three large graving docks and 750 metres of alongside deepwater berths that can provide berths for vessels of up to 100,000 tonnes.

The busy working port handles in excess of 100,000 tonnes of

product per year and on top of its extensive workshop facilities A&P Falmouth offers the ability to drydock without gasfreeing, as well as in-water surveys and propeller polishing.

Furthermore, a bustling array of more than 30 firms located in the port area offer a turnkey range of specialist services and supply chain including towage, area port health, diving services and bunkering facilities.

With a long history of shiprepair dating back over 150 years, A&P Falmouth has developed long-standing and close relationships with major clients such as the Ministry of Defence, Grimaldi Lines, P&O, Star Reefers and Condor Ferries to name a few. Indeed, the port has had shiprepairing partnering agreements in place for 25 years, which is clear proof that A&P Falmouth’s commitment to efficiency, reliability and quality is something that is recognised by its clients. Last year saw the 50th Grimaldi ship drydocked

by A&P Group in the last 12 years, with further work and prospects for this year.

Although the port’s facilities and excellent location make it an ideal destination for commercial and tourist shipping, with over 16,000 cruise passengers using the port annually this year as a gateway to Cornwall, there are important plans to deepen the port approach to allow for larger ships in the future. During 2013 the Secretary of State for Business Innovation and Skills, Vince Cable attended the docks to discuss issues surrounding port development with particular attention to dredging.

Commenting on the importance of dredging the channel Peter Child, managing director of A&P Falmouth, said: “Falmouth is recognised as the marine gateway to Cornwall and key to its future marine economy. For the past 150 years, the Docks have played an important role both economically and socially

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as the largest private employer in West Cornwall, as well as bringing significant wider benefits for Cornwall. There is a need to dredge a deep-water channel into the port to safeguard the existing port functions as well as developing businesses requiring use of the port by larger vessels. Ships are getting bigger and bigger with deeper drafts and cannot be accepted in the port due to the constraints of the existing channel which dates back some years. “There are now more than 30 businesses operating in Falmouth Docks, which together provide over 1400 skilled jobs in the local economy, worth more than £31 million a year in wages. If dredging is achieved, the anticipated uplift to Cornwall’s economy is an additional £156 million by 2030, which is a significant return on investment.”

Presently following several tests and trials, investigation is under way to establish how to best proceed with the dredging project. A report has been delivered to the Marine Management Organisation (MMO) so that it may establish the feasibility of relocating dead maerl, calcified seaweed, as a mitigation measure to the dredging project.

A further key development for the port was the award of a major renewables contract with a leading wave energy firm.

A&P Falmouth was chosen by Seatricity to build the first wave energy device that has now been deployed at Wave Hub, an advanced offshore renewable energy test facility. Announced in February 2014, the project saw 20 A&P Falmouth staff manufacture, fabricate and assemble the energy-converting device, Oceanus 2, using marine grade aluminium.

During the past several years A&P has worked to enhance its ability to meet the needs of renewable energy firms and the result has seen strong growth for the company in this market and a growing reputation for quality. If the Oceanus 2 is successful it could open the way for the manufacture of

as many as a further 60 devices as part of Seatricity’s plan to develop a full-scale 10MV grid-connected array over the next two years at Wave Hub, just ten miles off the North Coast of Cornwall at Hayle. Paul Weston, A&P Falmouth’s renewable energy technical manager, said: “We are absolutely delighted to have won the contract to build Seatricity’s next generation device to be deployed at Wave Hub, which is only a short distance from our shipyard in Falmouth. This is a tremendous boost, not only for A&P Falmouth but also for the local supply chain and demonstrates Cornwall’s growing reputation in the marine renewable energy industry. We are committed to helping the sector keep costs down and this project is a good example. We sat down with Seatricity at the concept stage and using our knowledge of working with aluminium identified substantial costs savings of 28 per cent.”

Business remains strong for the port and this is a trend that looks set to continue well into the future. As A&P moves to anticipate receiving larger vessels, plans are in place for future investment into improved berthing facilities to better serve large cruise ships. Furthermore, low-sulphur marine legislation has caused an increase in equipment installations as ship owners move to make their vessels compliant with new rules.

As such, it is clear that the A&P port of Falmouth is set to remain a vital maritime base for many years to come.

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Hyundai Heavy Industries: The happy heavyweight

In a little over 40 years, Hyundai Heavy Industries has grown into the world’s leading heavy industry conglomerate with global operations across seven business divisions from shipbuilding to electrical installation and industrial process plant

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C

hung Ju-yung, the late founder of the Hyundai Group, created Hyundai as a construction company in 1947. Chung decided to enter into shipbuilding in the early 1970s despite having no experience, capital, or shipbuilding technology. Despite these challenges, the company received orders for two 260,000-DWT crude oil tankers from Greek magnate George Livanos while Hyundai’s Shipyard was still in the planning stages.

In March 1972, ground was broken on an empty stretch of beach in Ulsan to construct what would become the world’s largest shipyard. Hyundai then started building the two oil tankers and the shipyard at the same time. Two years later, in 1974, Hyundai held a ceremony to simultaneously name the two tankers and dedicate the shipyard. Capturing the imagination of the international maritime community, the event was a historical first step for Hyundai Heavy Industries.

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Now the world’s biggest shipbuilder and a leading integrated heavy industries company with seven business divisions, 25 overseas-incorporated firms and 17 overseas subsidiaries, Hyundai Heavy Industries (HHI) has grown dramatically through innovation.

A decade after its first delivery, the Hyundai Shipyard topped 10 million deadweight tons in aggregate ship production, and has maintained its leading position in the world shipbuilding market ever since, mirroring the growth of modern Korean heavy industry. Its success has allowed the company to expand into other heavy industry areas, ultimately leading to the formation of the integrated Hyundai Heavy Industries after its separation from the Hyundai Group in February 2002. The independent establishment of the Hyundai Heavy Industries Group included mergers with Hyundai Samho Heavy Industries and Hyundai Mipo Dockyard.

Today HHI employs around 26,000 people in production, R&D, management and administration. Its key shipbuilding yard covers 1,500 acres. The Gunsan and Onsans yard are also world-class production yards, supporting a wide range of client and partner needs. HHI has a global business network in each of its seven business divisions: Shipbuilding, Offshore & Engineering, Industrial Plant & Engineering, Engine & Machinery, Electro Electric Systems, Green Energy and Construction Equipment.

• Hyundai Heavy Industries reliable submarines, naval ships and auxiliary service vessels of various proven and advanced hull forms.

Currently Hyundai Heavy Industries and its partner Accenture are collaborating to design a ‘connected smart ship’ that will enable ship owners to improve fleet management and achieve potential operational savings through the application of digital technologies.

Using a network of sensors that will be built into new vessels, ship owners will be able to capture a range of voyage information including location, weather and ocean current data, as well as on-board equipment and cargo status data. By applying real-time analytics to new and historical fleet data and using data visualization technology to present the insights, ship owners will be able to monitor their vessel’s status and condition in real-time to make data-driven decisions that support more efficient operations.

“The collaboration with Accenture is part of Hyundai Heavy Industries’ plans to expand its business from manufacturing into services”

Shipbuilding

Hyundai Shipbuilding Division, the world’s number one shipbuilder, leads the global shipbuilding industry with a 15% share of the market. The Hyundai shipyard stretches over four kilometres along the coast of Mipo Bay in Ulsan, Korea.

The Shipbuilding Division is capable of building all types of ships to meet the various demands of its clients, with ten largescale dry docks and nine huge ‘Goliath Cranes’. The division has garnered many awards and set many records within the shipbuilding industry, having delivered more than 2,000 ships to 305 ship owners in 51 countries since its foundation in 1972.

“Hyundai Heavy Industries and Accenture are collaborating to design a ‘connected smart ship’ that will enable ship owners to improve fleet management and achieve potential operational savings through the application of digital technologies” A subdivision within Shipbuilding is HHI’s Special & Naval Shipbuilding Division. As a licensed National Defense Industrial Shipbuilder and engineering consultant for the Korean navy, it has the technology to design and build modern,

Services are expected to include real-time alerts and warnings, predictive maintenance and more efficient scheduling. The connected smart ship will be developed using a combination of Hyundai Heavy Industries’ shipbuilding and manufacturing expertise and Accenture’s digital and shipping industry experience. As ship owners seek innovative new ways to reduce vessel operating expenses, this collaboration will deliver a range of real-time services to improve the efficiency of their ships, while simultaneously strengthening Hyundai Heavy Industries’ competitiveness.

“Businesses can gain a competitive advantage by embracing the connectivity wave underpinning the Internet of Things and integrating digital services into their products to keep pace with the next wave of innovation,” said Eric Schaeffer, senior managing director, Accenture. “Our collaboration with Hyundai Heavy Industries utilizes our digital technology and deep industry experience to enable a traditional ‘products’ company to adapt its business model, taking advantage of digital technologies like analytics. Hyundai Heavy Industries’ willingness to create value for its customers through adopting elements of the Internet of Things is a great step on its digital transformation journey.”

“Through this collaboration with Accenture, our ambition is to lead innovation in ship operations, shipping and the port logistics sector,” said Moon-kyoon Yoon, Chief Operating Officer of the Shipbuilding Division of Hyundai Heavy Industries.

The connected smart ship uses Hyundai Heavy Industries’ on-ship platform and the Accenture Connected Platforms as a Service (CPaaS) and all connected devices can be monitored and maintained remotely. With real-time data collection and exchange across vessels, ports, cargo and land logistics, Hyundai Heavy Industries will be able to create additional services and revenue streams to customers across the lifecycle of ships and journeys, removing barriers between different elements of a ship’s operation. The collaboration is part of Hyundai Heavy Industries’ plans to expand its business from manufacturing into services.

HHI has also recently developed the ‘Sea Weather Forecasting •

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Heatric printed circuit heat exchangers are unlocking the future of FLNG The key technical challenge of FLNG is to take a process developed in the relatively calm, accessible and ‘spacious’ onshore environment and deploy it where few of these things are true – with all the heightened safety considerations that this brings.

Heatric printed circuit heat exchangers (PCHEs) are already well-established in FPSO applications because they help simultaneously tackle the three great offshore challenges – space, weight and safety. Now they are also playing an important role in shrinking and lightening the topside bulk of the new global fleet of FLNG facilities, including Shell Prelude. A total of 18 Heatric PCHEs are being installed on Prelude. Their duties embrace a wide range of operations, among them natural gas extraction and fractionation including first and second stage cold recovery, gas dehydration, and gas and refrigerant compression. Together they save some 1500 tons of topside weight, lowering the vessel’s centre of gravity and improving stability in heavy weather. A PCHE will typically be just onefifth the size and weight of an equivalent shell and tube-type unit thanks to its exceptionally high heat transfer-to-volume ratio. But for all their light weight and compact footprint, PCHEs are still comfortably able to handle pressures up to 650 bar (almost 9450 psi) and temperatures from cryogenic to 900°C (1650°F) while delivering closely-controlled process parameters. For existing platforms, PCHEs can debottleneck and boost throughput. For newbuild projects, like FLNG, they offer the opportunity

to design-in higher levels of process efficiency, safety and durability right from the start, unlocking a host of additional financial and operational benefits along the way.

Pioneer and leader It is fair to say that no-one understands printed circuit heat exchangers (PCHEs) like Heatric. It was the pioneering research of the company’s founders that created the very first PCHE in 1985. Only Heatric has invested continuously for more than 30 years in refining and developing the technology, working with the world’s leading oil and gas companies along the way. Today the company’s 15,000m2 of advanced production facilities – a single, integrated operation which includes one of the largest radiography and pressure-testing facilities in the UK – are still unique in being dedicated exclusively to PCHE design, development and manufacture.

Heatric PCHEs are fully scalable with the recently extended factory able to accommodate the construction of the highest duty exchangers either

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as single units or as multiple manifolded units – as was the case with some of the largest PCHEs provided for the Prelude project.

Light and effective The key to a Heatric PCHE’s powerful package of weight savings and capabilities is its diffusion-bonded core, which creates an exchanger with exceptionally high transfer efficiency and structural integrity. The characteristics of this design provides PCHEs with inherent and integral safety benefits which, together with a host of operational features, are of particular value to remote, floating processing applications. The seamless core construction minimises hold-up as well as vibration fracture risks, rendering PCHEs immune to catastrophic failure modes seen in other exchanger designs. Fire risks are also reduced because each PCHE is constructed entirely from stainless steel or higher alloys, with no aluminium or other low melting point material used in their construction.

The future shape and disposition of a fullyfledged global FLNG fleet remains to be seen. But whatever liquefaction choices an operator makes, the compactness and robustness of PCHEs renders them uniquely able to deliver strong, powerful, structurallysimple solutions, all within an unmatched security and safety ‘envelope’.

System’ in partnership with the Korean Institute of Ocean Science & Technology (KIOST). The system will enable HHI to manage sea trial schedules of ships it builds at its Ulsan yard 72 hours in advance, by analysing sea weather information such as wave height, wind speed and current patterns on an hourly basis in seven offshore areas including Ulsan, Gunsan and Jeju Island. The weather system is also expected to minimize any possible delay in lifting work by the floating crane due to unexpected weather conditions, through precision forecasting of the sea weather every 60 metres in Mipo Bay and Jeonha Bay where HHI is based. The geographic information system (GIS) can also display sea weather information on the specific spots on an electronic navigational chart.

“HHI has also recently developed the ‘Sea Weather Forecasting System’ in partnership with the Korean Institute of Ocean Science & Technology (KIOST)” An HHI official said, “The weather forecasting system we developed is linked to 530 pieces of weather observation equipment across the nation and it can forecast 10 per cent more precisely than other existing weather systems by analysing adjacent sea topography 16 times more accurately.”

In April 2015, Hyundai-10,000, HHI’s newest floating crane, took its place as the ‘symbol of HHI’, by lifting a topside 82

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module of Moho Nord tension leg platform by itself, thereby replacing the two 1,600-ton gantry cranes at its offshore yard.

Hyundai-10,000 can lift objects up to 10,000 tonnes, about six times more than the Goliath crane, hence its name.

Construction of Hyundai-10,000 commenced at Hyundai Samho Heavy Industries (HSHI) in October 2013 and it was delivered to HHI’s offshore yard in late March this year.

The world’s largest shear-leg type floating crane in terms of lifting capacity, the 10,000-ton shear-leg floating crane is equipped with two 180 metre long crane booms and two sets of 70m high back stays. The crane is operable with 16 sets of main hoisting winches, eight sets of jib hoisting winches and 72mm and 54mm wire ropes, which are each 5,700 meters long.

“If we build an 8,000 ton topside module with the Goliath Crane, our employees have to repeat the same operations five times” The main hook is made of eight sets of 1,250-ton hooks.

The four sets of 2,200 kW main generators, two sets of 600 kW harbour generators and one set of 100 kW emergency generator produce the electricity the crane needs. The vessel also has a ballast system for purifying the sea water the crane takes in while it is on the sea or at berth.

To enhance safety, Hyundai-10,000 is specially designed to hold objects in the air even in an emergency situation when one of the two wire ropes is compromised. The crane is also engineered to maintain a hook angle of 15 degrees towards

• Hyundai Heavy Industries starboard/portside and 20 degrees towards the stern to handle the cargo in an optimal condition. The vessel can maintain its horizontal position automatically within a deviation of +/-100 mm when it lifts up a 50 metre-long cargo. The floating crane is expected to bring substantial benefits to HHI and its clients with on-time and early delivery.

“There was a time when a 10,000-ton offshore facility deserved to be called “a big order”, but now offshore facilities need to weigh more than 20,000-tons to earn that description”

“Let’s say the maximum weight of a topside block we can make for offshore facilities such as FLNG, FPSO and FPU is 1,600 tons,” said Park Jong-bong, COO of HHI’s Offshore & Engineering Division. “That means if we build an 8,000 ton topside module with the Goliath Crane, our employees have to repeat five times all the same prerequisite works to lift a 1,600 ton block such as hooking the crane’s wire ropes and rearranging the crane’s lifting points to the optimal locations, striking perfect balance. However with the Hyundai-10000, HHI can make a single 8,000-ton module, pick it up and install it at one time. It wouldn’t be hard to calculate the man-hours and construction time HHI can save from the streamlined lifting process.”

There was a time when a 10,000-ton offshore facility deserved to be called “a big order”, but now offshore facilities need to

weigh more than 20,000-tons to earn that right. A series of “big projects” lined up to be built with the world’s largest shear-leg floating crane in HHI’s offshore yard this year include, Quad 204 FPSO and Aasta Hansteen spar platform, Jangkrik FPU and Bergading central processing and wellhead platform.

Offshore & Engineering

The Offshore & Engineering division of HHI is located 5 kilometres away from the main shipyard and operates the world’s largest offshore yard, covering 292 acres. HHI’s involvement in offshore structures began with a Saudi Arabian order for 89 jackets and deck structures for the Open Sea Tanker Terminal, as part of the Jubail Industrial Harbor Project in 1976.

Since 1991, the Offshore & Engineering division has been a world-leading EPIC contractor, providing integrated services including engineering, procurement, installation, construction, transportation, offshore hook-up and commissioning, and project management.

The Offshore & Engineering division has successfully completed more than 170 projects, including over 100 EPIC turnkey projects and is recognized as one of the most experienced and advanced offshore yards in the world. The range of products and services covers FPSOs, FLNGs, FPUs, semisubmersibles, jack-ups, TLPs, fixed platforms, subsea pipelines, and land-based LNG and processing modules.

HHI’s Offshore & Engineering division combines onshore process plant expertise with offshore module fabrication experience, to create a high-value added service. The division

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will continue to develop state-of-the-art technology and provide high quality services for the oil and gas industry.

Industrial Plant & Engineering

The Industrial Plant & Engineering division has 38 years’ experience in industrial plant projects. It provides sophisticated engineering capabilities for power plants and carries out, on a turnkey basis, all phases of project implementation including engineering, procurement, fabrication, construction, commissioning, and training.

The division’s core business activities are EPC thermal power plants, co-generation power plants, combined-cycle power plants, desalination plants, and oil & gas production facilities, gas processing plants, LNG liquefaction, refineries, petrochemical plants as well as the fabrication and supply of key equipment for nuclear power plants.

Co-generation facilities simultaneously produce electricity and process steam from a single source of fuel.

This system reduces overall fuel consumption and has therefore been selected for various applications such as petrochemical process plant, refinery plant and district heating, etc. HHI has constructed 23 co-generation plants domestically and internationally.

The division’s experience in combined-cycle power plants includes the 127MW Inchon Airport CombinedCycle Power Plant in Korea, the 210MW Shaybah Power 84

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Generation Plant in Saudi Arabia, the 2,750MW Marafiq Independent Water and Power Project in Saudi Arabia, the 2,000MW Sabiya Combined Cycle Gas Turbine in Kuwait and the 1,729MW Riyadh PP11 Independent Power Project in Saudi Arabia.

Engine & Machinery

The Engine & Machinery division is the world’s largest marine diesel engine builder with approximately 35% global market share. The division reached the production milestone of 130 million bhp (brake horsepower) in 2-stroke engines in 2013. It is also a leading manufacturer of propellers, cargo oil pumps, ballast water treatment systems, and side thrusters.

In March this year HHI-EMD also reached a manufacturing milestone of 9,000 Hyundai HiMSEN diesel and gas engines, a reflection of the remarkable growth in the 4-stroke engine market and confirming Hyundai Heavy’s place as a market leader. The HiMSEN GenSet can use both diesel and LNG on LNG carriers and conventional LNG fueled ships.

Sales of power plants including Packaged Power Stations (PPS) have increased dramatically in markets including Cuba, Brazil, the Middle East, Africa, Europe, and Asia. Sales of industrial pumps and robot systems are also increasing rapidly. These products have become strategic items in the division’s plan for long term growth.

In terms of innovative and cutting-edge technology, 15

• Hyundai Heavy Industries

products have been selected as World-Class Products by the Korean government, a record achieved by no other Korean business to date. These include the 2-stroke marine engine, 4-stroke marine engine, crankshaft, propeller, marine propulsion shafts, cylinder liner, cylinder frame, turbocharger, engine power plants, packaged power stations, cargo oil pumps, side thrusters, industrial robots and LCD handling robots.

Electro Electric Systems

Hyundai Heavy Industries has earned a worldwide reputation as a business partner in the power industry with the manufacture and supply of a wide range of electrical equipment, such as transformers, gas insulated switchgear, switchgear, LV & MV circuit breakers, electric motors, generators, integrated control & monitoring systems, and power electronics.

With cutting-edge designs, state-of-the-art manufacturing facilities and innovative production technology, HHIEES manufactures high-quality power and distribution transformers with a rated voltage of up to 800 kV and a capacity of up to 1,500 MVA. HHI’s SF6 Gas Insulated Switchgear (GIS) is a major piece of electrical equipment used in substations, and contains a gas circuit breaker, disconnecting switch, earthing switch, voltage transformer, current transformer, and lightning arrester in a

grounded metallic enclosure. The GIS is filled with sulphur hexafluoride gas (SF6), which has the best insulation and arcquenching capability.

HHI’s marine electrical products include dry-type transformers, generators, motors, main switchboards, engine control room consoles, bridge control consoles, automation systems, and various panels. These products have been installed on a large number of ocean going vessels and are highly regarded for their economy, efficiency, and outstanding performance.

Legacy

Since its establishment in 1972, Hyundai Heavy Industries has grown into the world’s leading heavy industries company by successfully diversifying from shipbuilding into offshore and engineering, industrial plant and engineering, engine and machinery, electro electric systems, construction equipment and green energy businesses.

HHI is proud to have played a pivotal role in Korea’s economic development, but also to have become a responsible global corporate citizen, contributing to the sustainable development of the world economy.

The key to HHI’s success lies in its business philosophy, characterised by creative wisdom, positive thinking, and unwavering drive, inspired by the indomitable pioneering spirit of its late founder Chung Ju-yung.

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Eni:

A major integrated energy company •

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F

ounded in Italy in 1953, Eni now operates across the entire energy chain, making continuous efficiency improvements, and developing exploration and marketing activities worldwide

Eni SpA is an integrated company that operates across the entire energy chain, employing more than 84,000 people in 83 countries around the world. Its business strategy is based on operating excellence, and a focus on health, safety and the environment. It is committed to preventing and mitigating operational risks.

Eni was founded in 1953 as Ente Nazionale Idrocarburi under the leadership of Enrico Mattei. Enrico was among 90

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a small group of industrial leaders who recognized that Italy needed to become a player in global markets and was one of those responsible for transforming Italy from a poor, post-war farming nation into a major industrial force. Eni today is a close, open and dynamic company, holding to its key values of sustainability, culture, partnership, innovation and efficiency, which are communicated across the world by its instantly recognizable symbol, the six-legged dog.

Scope of operations

Eni engages in oil and natural gas exploration, field development and production, as well as in the supply, trading and shipping of natural gas, LNG, electricity, fuels and chemical products. Through refineries and chemical plants, Eni processes crude oil and other oil-based feedstock to produce fuels, lubricants and chemical products that are supplied to wholesalers or through retail networks or distributors.

• Eni

“Eni’s strategy is to pursue organic growth through exploration activities based on a conventional portfolio of titles and a low level of exposure to non-conventional projects” Furthermore, Eni operates in engineering, oilfield services and construction both offshore and onshore, focusing on the execution of technologically advanced mega-projects mainly located in frontier areas.

Between 2008 and 2013 Eni discovered resources of 9.5 billion barrels of oil equivalent. In the first nine months of 2014, the company also ascertained the presence of new resources amounting to 700 million boe. This important result is based on a two-pronged upstream strategy: firstly, the pursuit of organic growth through exploration activities based on a conventional portfolio of titles and a low level of exposure to non-conventional projects.

Exploration success makes it possible to achieve low discovery unit costs and development projects that are automatically more competitive and, consequently, less susceptible to fluctuations in the price of crude oil. The strategy also foresees the acquisition and maintenance of the role of operator, with a

high level of participation in the most interesting exploration permits.

To make exploration performance sustainable Eni is undertaking continuous renewal of the company’s portfolio.

In addition, Eni is pursuing the renewal, expansion and diversification of its exploration portfolio, which in recent years has seen the company enter new countries such as South Africa and Myanmar, and the acquisition of new exploration areas in countries like China and Vietnam. By constantly renewing the exploration portfolio Eni is able to spread risk across a range of exploration areas and increase the possibility of discovery. Eni’s current exploration investments are divided across frontier areas, (40% in countries including Mozambique), traditional areas in which the company operates (40% in countries including the Congo and Angola) and in “incremental‘ and “near field‘ exploration projects (20% in countries including Egypt and Pakistan).

After two years of exceptional results from “supergiant‘ discoveries in the Rovuma basin in offshore Mozambique, Eni is also achieving important exploration successes. These include oil discoveries in pre-salt layers in West Africa with the discoveries of Nene Marine and Minsala Marine in Congo and gas and condensates at Nyonye Deep in Gabon. These are all discoveries in shallow waters and near to existing infrastructure, which means they can be rapidly brought into production. Also in West Africa, the new discovery of oil in Block 15/06 in Angola; in Egypt, new oil discoveries in the Gulf of Suez and in the Western Desert; in Mozambique, through the delineation of the Agulha field.

In Nigeria, Eni has made new oil discoveries in Block OML125, that will feed the ABO field; it has made further discoveries in the Norwegian Barents Sea, which will consolidate the reserve base for the development of Johan Castberg. The rediscovery of Oglan in Ecuador will rapidly be brought into production and, finally, the new gas discovery in Indonesia through the Merakes well, in the East Seppingan block, which, given its proximity to the Jangkrik development field and the Bontang liquefaction facilities will be able to transport additional volumes of gas to the plant.

In 2013 Eni adopted an organic approach to the exploration of non-conventional shale oil resources, by entering the relatively unexplored area of the Delaware basin in West Texas, where a first well, the Stalling 1H, has been drilled and put into production, with an initial daily oil output of around 750 barrels.

Latest developments

Last month Eni, together with Statoil, Sasol and ENH, was awarded, following the 5th Competitive Mozambique Bid Round, the exploration and development rights of the offshore block A5-A, in the area of Mozambique named Angoche, about 1,500 kilometres northeast of the capital city Maputo. The block, which covers a total area of 5,145 square kilometres in a water depth between 200 and 1800 meters, is situated within an unexplored area of the Northern Zambezi Basin, which the consortium estimates to contain significant hydrocarbon resources. Eni, through its subsidiary Eni Mozambico, is the operator of the joint venture, with a 34% stake.

Eni has been present in Mozambique since 2006 and is the operator of Area 4, owned through its subsidiary Eni East Africa. In Area 4, following an intensive exploration campaign and appraisal, from 2011 to 2014, Eni also discovered •

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supergiant natural gas resources, estimated in 2.4 billion of cubic meters of gas in place.

Also last month, Eni announced the success of the Nidoco North West 3 well drilling in the Nooros exploration prospect, located in the Abu Madi West licence in the Nile Delta, which is estimated to contain about 15 billion standard cubic metres of gas. The field was discovered in July this year and put into production after only two months; it currently produces more than 15,000 barrels of oil equivalent per day (boepd). Production from the new well will start by the end of November this year. By the end of 2015, Nooros field will produce 30,000 boepd and is expected to reach a plateau of 70,000 boepd in the first half of 2016. The gas and condensates are sent to the Abu Madi’s treatment plant, about 25 kilometres from the discovery, and then routed in the Egyptian network.

Similarly to the discovery well, Nidoco NW3 was drilled from onshore to reach the Noroos reservoir located in the offshore shallow waters. The well encountered a 65 metre thick gas bearing sandstone layer of Messianian age with excellent petrophysical properties. In parallel with the field development, Eni will continue its exploration activities in the licence area, where it has identified a significant additional potential which will be tested through the drilling of other three new exploration wells. Eni, through its subsidiary IEOC, holds a 75% stake in the Abu Madi West licence, while BP holds a 25% stake. The operator is Petrobel, held equally by IEOC and by the state company Egyptian General Petroleum Corporation (EGPC).

Eni reported in October that it reached a new production of 73,000 barrels of oil per day in the Western Desert of Egypt, doubling in just three years the level of production in the area. The production increase is attributed to production growth in the Melehia West Deep field, located 290 kilometres west of Alexandria. The new field, which contains oil and gas in the Lower Cretaceous and Jurassic’s deep geological layers, was discovered on January 2015 and, following an appraisal campaign, it has already 92

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achieved a production level of 12,000 barrels of oil per day. Eni expects to bring production in the Melehia West Deep Field to over 15,000 bopd also thanks to the start-up of the first treatment plant and the gas export of Melehia’s license by end of November.

These new finds with immediate return of production capacity are the result of Eni’s new strategy in the country, where the rapid development of the discoveries has been possible through existing infrastructures and synergies. Eni has been present in Egypt since 1954 where it operates through IEOC. The company is the leading producer in the country with an equity production of around 190,000 barrels of oil equivalent per day.

The future

Claudio Descalzi, Eni’s chief executive officer, outlines the company’s growth strategy: “Since last summer Eni’s transformation into a more closely integrated oil and gas business has made significant progress. While maintaining our focus on our exploration success we have achieved the turnaround of Gas & Power one year earlier than expected and the restructuring of our Refining & Marketing activities will lead us to break even in 2015. Despite this success, the oil price fall means our 2015-2018 plan is predicated on much lower oil prices. We have taken a series of additional measures, including capex optimizations and opex and G&A reductions, all of which will strengthen the business. The decision to re-base the dividend in 2015 is appropriate and in line with our strategic objectives considering the new oil price scenario. It sets a level from which sustainable returns can be delivered while maintaining a progressive dividend policy with underlying earnings growth.”

Given the current oil price, Eni is putting in place plans to ensure continued improvement and growth in the upstream area, made possible by its ability to discover large new hydrocarbon reserves and rapidly complete 70 major development projects in geographically diversified areas, most of which have already started. It also plans to complete the

• Eni

“We have achieved the turnaround of Gas & Power one year earlier than expected and the restructuring of our Refining & Marketing activities will lead us to break even in 2015”

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restructuring process in the mid-downstream, severely affected by the recent crisis in the European gas and refining market, bringing the businesses back to breakeven and later to profit.

Exploration remains an important growth driver for the company. In the first two years of the 2015- 2018 plan, activity will be focused on proven plays and near-field exploration in order to quickly complete the full appraisal of resource potential, while benefiting from all the logistical advantages in development and production start-up activities. The hydrocarbon production growth target will be achieved mainly through the start-up of 16 major projects and the ramp-up of those already started in 2014, with a total contribution in excess of 650kboed in 2018.

Gas & Power’s restructuring plan, which accelerated remarkably in 2014, will be completed in the four-year plan.

The plan will see full alignment of gas supply costs to market prices and substantial recovery of pre-paid take or pay volumes by 2016; simplification of the operational structure and optimization of logistical costs with savings of 300 million euros by 2018; development and growth in high value segments, in particular in retail, trading, and LNG. In order to address the structural weaknesses expected in Refining over the next four years, Eni will complete the transformation process of the R&M segment through completing the rationalization and reconversion process of facilities in Italy and overseas, make continuous efficiency improvements, and develop marketing activities worldwide.

In conclusion, the strategic transformation outlined in the plan will lead to a much more robust Eni, which will be able to face a period of lower oil prices while continuing to create value in a sustainable way.

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