John White Managing Director
Welcome,Dear Reader, to your latest and end-of-year edition of Inside Oil & Gas. With its sister publication, Inside Marine, having recently been published, what does this popular pub lication have for you to round out the year?
Throughout this year, in our dealings with hundreds of oil and gas companies across the globe, we have certainly noticed that you are all stepping up your sustainability commit ments. Indeed, we have seen this across all industry sectors covered within our other business magazines, and as a result, this year we launched Inside Sustainability maga zine to cover this topic in more detail.
With governments setting targets for lower carbon emissions, the oil and gas industry is increasingly exploring new inno vations to find the best ways to successfully move towards an energy efficient future. Increasingly, we are seeing a lot more oil and gas companies trialling and enjoying suc cess with a widening range of technologies and solutions that are helping them become more sustainable, minimise costs and ultimately cut their carbon footprint. As mentioned above, climate change and tech nology are affecting almost every industry on a global scale, but none more so than the oil and gas sector. The increasing focus on, and pressure toward, sustainability is resulting in a major transformation within the oil and gas industry.
In fact, many traditional oil and gas compa nies are evolving to the point where they now consider themselves energy companies, mobility companies, or even retail compa nies, as they diversify and expand into new areas with innovative business models.
Some have gone so far as to rebrand the com pany name to support this diversification.
So, what have you all been doing to address this issue? Sustainability and digi talisation have become the key focus of many energy and utilities companies. These indus tries are leading other sectors when it comes to adopting sustainable practices, arguably making more sustainability-related changes to your operations than those in many other industry sectors we work with. Some of you are now exploring, or already include, new revenue streams, such as renewable energy, advanced chemicals, biofuels, hydrogen, LNG and much more. Digitalisation is what seems to make diversification possible with advanced technologies changing the way companies work by creating more opportuni
ties and opening doors to new options for innovative business models.
In summary, 2022 has been a tough and challenging year for many. However, with pressure applied from without and within, there are increasing expectations impacting on the oil, gas, and energy industries espe cially. Therefore, I take my hat off to you all for taking such mammoth steps to address sustainability and the reduction of our carbon footprint. Keeping true to the early oil and gas explorers that your industry is his torically renown for, you have donned your hard hat, rolled up your sleeves and with a no-fuss determination, got on with the job in hand by exploring new territories and pushing the boundaries of technology in these new fields. n
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Managing Director John White drills down into sustainability to explore the new oil and gas fields of innovation and diversification.
Subsea Expo is the world’s leading annual subsea exhibition and conference, held annually at P&J Live in Aberdeen. The exhibition is a quality-focused event showcasing the capabilities, innovations and cutting-edge technologies of the underwater sectors, with over 185 exhibitors and 6,500 delegates attending the latest show. The conference runs multiple parallel sessions and attracts a broad range of experts to discuss the challenges facing the industry, new and transformational tech nologies, digitalisation, clean energy and the path to net zero, among other topics.
www.subseaexpo.com
The World Petrochemical Conference is the premier gathering of industry leaders and govern ment officials, creating a platform for insight, and dialogue on major strategic issues facing the global petrochemical industry. In 2023 WPC will take place in Houston, Texas offering an array of sessions featuring major chemical companies and leading organisations discussing the crit ical issues that impact the chemical market, numerous networking opportunities and a variety of industry leading petrochemical training courses. Next year’s event will offer both in person attendance and a virtual platform, creating a one-stop-shop experience for attendees.
https://wpc.ihsmarkit.com
In 2023, European Gas Conference (EGC) will be celebrating the 16th anniversary of the event alongside many of Europe’s main suppliers. Described as the most important, geopolitical discus sion in the midstream gas calendar, EGC will assess the impact of the 2022/23 winter for Eastern and Western European gas markets and promote gas’ role on the journey to net-zero. The third day of the event, hosted in Vienna, will be complemented by the European Hydrogen Conference. https://energycouncil.com/event-events/european-gas-conference
The 4th edition of The Oil and Gas IoT Summit brings together an exclusive community of around 120 major stakeholders from worldwide operators, EPCs, regulators and technology providers to debate and discuss the key issues and trends shaping the digital transformation of the industry. Across two fast-paced, highly interactive days in Lisbon, attendees will hear from a speaker panel of thought leaders who share strategic insights and practical, implementable strategies. Visitors can participate in interactive polling sessions, join roundtable debates and expand their networks through both structured and informal networking sessions https://oilandgas-iot.com/
The 24th edition of the World Petroleum Congress will prove to be an important bridge between the traditional energy sector and a more carbon neutral industry over the next 25 years. Important conversations will happen to help define realistic, workable paths towards a net zero future. A global symposium assembling more than 100 nations, the World Petroleum Congress convenes every three years for thought-provoking exchanges and an interactive exhibi tion. Participants examine all aspects of the industry, from technological advances in upstream and downstream to the role of natural gas and renewables, management of the industry and its social, economic and environmental impact. https://www.24wpc.com/
The regional flagship event, SPE/IATMI Asia Pacific Oil & Gas Conference and Exhibition (APOGCE) 2023, returns to Indonesia. A collaborative effort between SPE and IATMI since 1999, APOGCE is the premier upstream tech nical conference in the Asia Pacific region, covering the broadest range of disciplines involved in energy transition, exploration and production activities. Aptly themed “Managing the Base During the Net Zero Transition”, APOGCE 2023 will dive into current practices as the industry strives towards maintaining productivity, remaining sustainable and preserving business resilience. https://www.spe.org/events/en/2022/conference/22apog/asia-pacific-oiland-gas-conference-and-exhibition.html
Reporting on the latest developments from the Singaporean oil and gas sector
Air Liquide, Chevron, Keppel Infrastructure, and PetroChina announced they have signed a memorandum of understanding to form a consortium which aims to evaluate and advance the development of large-scale carbon capture, utilisation, and sequestration (CCUS) solutions and integrated infrastructure in Singapore.
consortium intends to research, test, and develop technological, logis tical, and operational solutions for CCUS in Singapore. In doing so, the consor tium will look to provide industry wide CCUS integrated infrastructure, primarily to support the energy and chemicals sector. This will be by capturing and aggregating carbon dioxide (CO2) from large industrial emitters at a centralised collection facility.
The CO2 would then be utilised to make useful products, such as plastics, fuels, and cement. Alternatively, it could be trans ported through either pipelines or ships to suitable reservoirs in the Asia Pacific region for sequestration. This is via a pro cess of injecting CO2 into deep under ground geologic formations for permanent and secure storage.
Michele Gritti, Vice President, Large Industries and Energy Transition, Air Liquide SEA Cluster, said: “Supporting the decarbonisation of industry to help address the urgency of climate change is a priority. We are pleased to collaborate with Keppel Infrastructure, Chevron, and PetroChina in this decarbonisation endeavour, leveraging our expertise and experience in carbon cap ture, purification, and liquefaction to build a comprehensive carbon capture decarboni sation solution. In line with its Climate Objectives, Air Liquide is committed to sup port Singapore’s drive to achieve net-zero by 2050.”
Air Liquide Singapore (ALSg), a fully owned subsidiary of Air Liquide Group, started its operations in 1911 and now employs close to 800 employees. With assets of more than S$1 billion, ALSg operates the largest network of air sepa ration plants and gas production facili ties, strategically located on 21 sites in Singapore. ALSg has come a long way since its founding, partnering with diverse industry players to support the Singaporean economy through a unique blend of advanced equipment, processes & systems, supported by a highly engaged and competent workforce.
Air Liquide Singapore has expressed its confidence that the pressure coming from international customers and market in moving to low carbon energy environment will allow it to not only to meet its goals in carbon footprint reduction, but to build new business and services for existing and new cus tomers. This consortium looks likely to contribute to that.
Keppel Infrastructure (KI) is a wholly owned subsidiary of Keppel Corporation, a Singaporean flagship multinational company providing solutions for sustain able urbanisation. KI provides solutions for some of the world’s most pressing
challenges through its power & gas, environment and new energy businesses by leveraging its proprietary technology, strong technical expertise and proven operating capabilities.
Chua Yong Hwee, Executive Director (New Energy), Keppel Infrastructure said: “Hard-to-abate sectors need to leverage technology and innovation to transit towards net zero CO2 emissions. Keppel Infrastructure is well-positioned to sup port efforts to decarbonise key sectors, given our experience as a leading devel oper, technology solutions provider and operator of energy and environmental infrastructure in Singapore and the region. In line with Keppel’s Vision, 2030, which places sustainability at the core of its strategy, our collaboration with Air Liquide, Chevron and PetroChina will enable us to take another step towards addressing Singapore’s needs for a low carbon economy.”
In Singapore, Keppel operates a 1,300megawatt high efficiency gas-fired com bined cycle power plant and a utility pipe rack and pipeline network in Jurong Island. It is also Singapore’s leading electricity retailer, and the first and largest district cooling systems developer and service provider. Globally, through Keppel Seghers, it is one of the leading WTE technology providers with more than 100 project refer ences in 20 countries.
Reporting on the latest developments from the New Zealand oil and gas sector
Air New Zealand has reached its next stop on its Flight NZ-0 journey, its commitment to reaching net-zero carbon emissions by 2050. The airline has welcomed the first shipment of Neste MY
Sustainable Aviation Fuel (SAF) into New Zealand.
The1.2-million-litre import of neat SAF is equivalent to fuelling around 400 return flights between Auckland and Wellington. In its current neat form, it reduces greenhouse gas emissions by up to 80% over the fuel’s life cycle compared to fossil jet fuel use. The SAF is made from sustainably sourced, renewable waste and residue raw materials.
The first shipment will be used to help test and set up the supply chain for importing SAF into New Zealand. As SAF is a drop-in fuel, it will be put into the fuel system at New Zealand’s Marsden Point harbour, where it will make its way down to Auckland Airport and will be delivered to Air New Zealand through the regular jet fuel supply chain.
Air New Zealand Chief Executive Officer Greg Foran said the airline is committed to getting the Air New Zealand fleet up and running on SAF and this shipment of fuel from Neste marks the beginning of making regular imports a reality: “This is a major milestone for us. We made a commitment when we announced Flight NZ-0 earlier this year to find a more sustainable way to connect with the world. Air New Zealand is already one of the most fuel-efficient airlines in the world with our modern fleet, but the future of travel relies on lowcarbon air transport.
“While we are starting out small, it will help us to understand how we can ensure the supply chain is robust enough to keep up with demand.” He continued, “cur rently, SAF only makes up less than one percent of the global fuel supply and is around three-to-five times the cost of fossil jet fuel, so while sourcing it is a challenge, it’s one we are tackling head on. By 2030, we expect our fleet to be fuelled by ten per cent SAF.”
SAF delivers the performance of conven tional jet fuel but with a significantly smaller carbon footprint on a life cycle basis. Neste is a Finnish company producing SAF from 100% sustainably sourced, renewable waste and residue raw materials, such as used cooking oil and animal fat waste. Once blended, SAF works seamlessly with existing fuelling infrastructure and aircraft engines.
Air New Zealand and the Ministry of Business, Innovation and Employment signed a Memorandum of Understanding (MoU) in September 2021 to explore the fea sibility of a local SAF facility in New Zealand. Commercially producing SAF in New Zealand would not only help lower the country's emis sions and provide enhanced fuel secu rity and energy independence.
The airline continues to actively engage with the New Zealand Government to advo cate for the policy and regulatory set tings
required to establish a SAF market and address the price premium SAF commands.
Research, Science and Innovation Minister Dr Ayesha Verrall said the Government is working with the aviation sector to explore ways of reducing carbon emissions: “Air New Zealand has constantly led the way by embracing innovation, we need new solu tions as we transition to a low-emissions economy. This is why it's encouraging to see the import of SAF. This complements our other work as the Government is currently investigating the feasibility of SAF produc tion in New Zealand.”
Air New Zealand is hopeful that its SAF supply over time will include local produc tion to improve cost effectivity, supply chain security and the ability to manage peaks and troughs in demand. Importantly, domestic production also provides a circular economy for New Zealand’s waste streams.
Domestic production has other important co-benefits, including creating new jobs and other economic develop ment opportunities.
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Reporting on the latest developments from the Swedish oil and gas sector
Energy company St1 has made an investment decision to construct a biogas upgrading and liquefaction refinery in Sobacken, south of the city of Borås in Sweden.
ITisa project of collaboration. St1 has also signed a long-term off take contract with Borås Energi och Miljö to buy raw biogas, which was a prerequisite in the decision to invest in the refinery. The agreement includes the two public gas filling stations of Borås Energi och Miljö which will be transferred to St1. The company will continue expanding its biogas filling network in the Nordics to dis tribute this new liquid biogas production.
St1 has started the construction work and the biorefinery is expected to commence its operations at the end of 2023. St1 has signed an agreement with Wärtsilä Gas Solutions to supply the biogas upgrading and liquefaction facilities. The project has also been granted support from Klimatklivet – a Swedish investment support program targeting pro jects reducing climate impact.
St1 and Borås Energi och Miljö hope to create a strong value chain in renewable biofuels, both focusing in their own areas of expertise. St1 will upgrade and liquefy the raw biogas Borås Energi och Miljö pro duces from food waste and sewage sludge, and then sell it in its developing distribu tion network.
“Our modern facilities, in combination with the more than 30 years’ experience and competence we have within the company, will enable us to produce large quantities of biogas in the future. This collaboration with St1 allows our biogas to reach a large
market,” said Magnus Kårestedt, CEO of Borås Energi och Miljö. “We have carefully chosen to start a collaboration with St1 because the company has a solid and versa tile track record in the energy sector, as well as a strong growth strategy in the Nordic biogas market,” continued Mr Kårestedt.
St1 is already a leading biogas player in Sweden, with about 30% market share in the road transport segment. Its biogas operations are located in the urban areas of Southern Sweden as well as in Stockholm. The company produces, imports, and exports biogas, and delivers it to customers through several sales channels. St1 has six biogas production and upgrading refineries in Sweden. Two of them, namely, Söderåsen Bioenergi AB and Falkenbergs Biogas AB, are majority-owned subsidiaries.
St1 started off its biogas business in Finland and Norway last year. The company is cooper ating with Knapphus Energi and Nor-log in building infrastructure for biogas in Norway. In Finland, St1 and food company Valio estab lished a joint venture to produce renewable biogas from dairy farm manure and other agricultural by-products, mainly as fuel for heavy-duty transport. The joint venture aims to achieve production capacity of up to one terawatt-hour (TWh) by 2030.
“At St1, we reinforce our operations through strategic long-term partnerships. Strengthening our biogas business in the countries where we operate is a concrete
step in the consistent and long-term imple mentation of our growth strategy. We are delighted that our plans with a solid partner, Borås Energi och Miljö, are now material ising, and we can start to decarbonise trans port and accelerate the energy transition together,” said Matti Oksanen, Director of St1’s Gas Business.
St1 is an energy company, with a vision to be the leading producer and seller of CO2-aware energy. The Nordic energy group operates in several business areas in Finland, Sweden and Norway. Its vision is to be the leading producer and seller of CO-aware energy and the company opened its first refinery in Sweden in 2004. n
Well-Safe Solutions and Neptune Energy have agreed a contract for the Well-Safe Protector jack-up rig to plug and abandon at least four subsea and 21 platform wells in both the Dutch and UK sectors of the North Sea.
Theone-year, firm contract also enables Neptune Energy to take up Well-Safe’s broad range of decommissioning engineering services if required, as well as the option of up to eight three-month extensions. Mobilising during Q1 2023 in direct continuation from an earlier well decommissioning project for Ithaca Energy, the Well-Safe Protector is a harsh environment, inde pendent leg cantilever design jack-up rig with an extensive operational history in the North Sea.
Founded in 2017, Well-Safe Solutions provides the complete well decommis sioning plug and abandonment (P&A) capability for the global energy industry. With over 280 employees on and off shore, Well-Safe Solutions operates from international headquarters in Aberdeen, UK. Its decommissioning specialists support clients from front-end engi neering and design to project execution and the retention and reintroduction of lessons learned.
Well-Safe’s groundbreaking ‘P&A Club’ approach to decommissioning pairs a wealth of oil and gas experience and knowhow with significant investment in bespoke, fit-forpurpose marine and land-based assets. An option to P&A an additional three subsea wells is also available during 2023.
Duncan Morison, Rig Manager of the Well-Safe Protector, said: “With the addi tion of a further backlog of work to the Well-Safe Protector’s schedule, we are delighted at the level of interest the WellSafe business model continues to gen erate in mature fields such as the North Sea. The Well-Safe Protector boasts a large volume of deck space for tubing, casing and conductor recovery, allowing effective batch operations and helping our clients to realise considerable opera tional savings. There are clear opera tional synergies between Well-Safe Solutions and Neptune Energy, and we look forward to collaborating with the Neptune team to effectively and effi ciently plug and abandon these fields.”
Stuart Payne, NSTA Director of Supply Chain, Decommissioning and HR, added: “We have consistently pressed operators and the supply chain to work in a collaborative way to form well decommissioning campaigns, which are more cost-efficient and help save time and lower emissions.”
Mr Payne extolled the virtues of using the technology in the UK market: “The Well-Safe Protector’s upcoming mobilisa tion for a multi-operator campaign is the latest encouraging sign that industry has got the message loud and clear. The crossborder element of this work also highlights
the potential for exporting the considerable decommissioning expertise of the UK supply chain to other regions.”
The announcement follows on from news in the summer that the Well-Safe Protector will plug and abandon six wells on the Anglia platform in the Southern North Sea, for Ithaca Energy. The work is taking place approximately 55km from the UK mainland. The contract – for an undisclosed sum –means the Aberdeen-based well decommis sioning specialists will provide project man agement, well engineering and all managed delivery services for the project.
Matt Jenkins, Chief Operating Officer at Well-Safe Solutions, said: “This fullservice contract is further vindication of our operating model and allows Ithaca to realise the benefits of Well-Safe’s extensive experience in the Southern North Sea. Well-Safe delivers environ mentally friendly and cost-effective well decommissioning operations, unlocking key learnings over multi-well, multioperator campaigns.”
He continued: “We are thrilled to have reached this agreement with the team behind Ithaca Energy, who have entrusted Well-Safe with this important project, allowing them to maintain resources on their production delivery workscopes and signifi cant capital projects.”
Reporting on the latest developments from the UK’s oil and gas sector
Inside Oil & Gas asks the experts about their personal experience in the industry minds inside oil & gas
In light of current global events, how is your company ensuring that its long-term relationships with suppliers remain as strong as possible?
Respect, integrity, diversifi cation, collaboration and safety are key characteristics Halliburton looks for in establish ing long term relationship with our internal and external cus tomers. Without these key attributes, mutually beneficial business relationships are not sustainable.
As a solutions provider with tangible results, we work with partners through direct and collaborative relations that are primed for the long-term. Communication and transparency are everything, so decisions are made quickly, and being able to adapt quickly is a real advantage to us.
Rob Marchitello, CEO, Airem Energy
Guy Tennant, Area Vice President for the Southern Gulf Operations in the MENA region, Halliburton
We utilise our financial strength to assist our suppliers and ensure their stability, despite fluctuating raw material prices and supply chain problems. That’s how we main tain our long-term relationships.
Our supplier partnerships are long-term and well estab lished. They’re relationships of trust and commitment, and our consistency in terms of annual turnover and on-time payments make the relationships even stronger. We also try to provide them with accurate forecasts for raw materials and/or equipment to help them plan for and adjust to the currently highly challeng ing market conditions.
In general, the UAE has good global rela tionships and ADNOC has a well-developed global supply chain. Consequently, our suppli ers won’t be affected by global events as long as they remain competitive because that’s our ultimate goal as well.
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Ullas Balaraj, Branch Manager, Star Technofit Trading
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We build for the long-term, so we ensure that we are not only respectful and loyal to clients, but actively maintain and promote open communications and dia logue with them.
David Williamson, Operations Manager, Recon Oilfield Services
Spyros Sotiropoulos, Commercial Director, Spyrides SA
As a reliable partner with proven product quality, we maintain excellent relations with clients through mutual trust, transparency, good communication, and joint planning.
Vaishak Mantodi, Sales Manager MRO/Service, WIKA Middle East FZE
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Nasir Sharif, General Manager, Gulf Commercial Group Establishment
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We have been using Teams and Zoom to stay in touch, but as travel is resuming, we’re seeing the majority of our suppliers again. It’s crucial for them to have contact with us because we’re their route to market. Communication is key, even if it’s not always good news, so that we can give the customer realistic lead times.
Derek Henry, Sales Director, Merlin Diesel Systems LtdBeing dependable, reliable and trustworthy helps to underpin our long-standing relationships with clients and suppliers.
Tammer Azzouz, Exec Vice President, Spetco International Petroleum
Building long-term relations with our clients and suppliers is the key to successful progression for all. It is important to us to build a professional and personal relationship based on exemplary trust and respect.
Labid Ghodhbani, CEO, Compagnie Tunisienne de Forage (CTF)
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With suppliers and clients, we always communicate and tell the truth. If they are happy, then we are happy. Ultimately, we want to partner with them for the long haul.
We take a proactive role in maintaining long-term relations with suppliers and clients, by focus ing on a partnership-approach to projects and problems. That way, we can all benefit from the com plete process.
Charles Njuguna, CEO, Koil Energy Solutions
Adi Agung, CEO, PT. Bayu Maritim Berkah
Long-term relations with partners, clients and suppliers are built on trust, transparency, commitment and integrity. We have gained credibility and reputation because we refuse to compromise on these values.
Mr Zuhair Shehada, CEO, Abu Dhabi Oilfield Services Company (ADOS)
We would love to hear your answers,
over to our Editorial Manager, Phil Nicholls, and share
thoughts to all our readers.
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Amarinth, a world-leading, net-zero designer and manufac turer of low lifecycle cost centrifugal pumps and associated equipment, has won a $500,000 order from KPO in Kazakhstan for six API 610 OH2 pumps. Amarinth makes pumps for nuclear and renewable energy generation, defence, desalination, process and industrial markets.
The Karachaganak field is the biggest gas condensate field in Kazakhstan and is owned and operated by Karachaganak Petroleum Operating (KPO). The onshore field is near Aksai, in northwest Kazakhstan and covers an area of over 280 square kilometres. KPO approached Industrial Systems Group (ISG), an Amarinth agent and leading supplier of high-quality equipment for the oil & gas and asso ciated industries in the Caspian region.
This order followed previous purchases placed though ISG that were successfully fulfilled by Amarinth. The six API 610 OH2 pumps will be used for water and caustic fluid transfer duties. The company’s process pumps are horizontal, vertical and in-line bespoke process pumps, hydraulically and dimensionally interchangeable with the former Girdlestone and other obsolete pumps.
The pumps will be winterised to work reliably when operating in temperatures ranging from -40°C to 65C and will be manufac tured in Low Temperature Carbon Steel. They are also designed to connect directly to existing KPO Variable Speed Drives.
The pumps will be EAC Certified, proving the equipment com plies with the Eurasian Economic Union (EEU) regulations and standards for customs clearance and trade. Amarinth is also handling the complex GOST-K Certificate of Conformity docu mentary evidence required by Kazakhstan law. This is to prove that the equipment meets Kazakhstan’s requirements and stan dards, something that, once again, the company has developed expertise in.
Oliver Brigginshaw, Managing Director of Amarinth, commented: “We are delighted to receive another order from KPO through ISG, our agent in the region. The confidence from KPO in Amarinth to deliver reliable pumps working in such arduous conditions under lines our on-going commitment, alongside our agent ISG, to the oil and gas industry in the Caspian region.”
Amarinth is a world-leading company specialising in the design, application and manufacture of centrifugal pumps and associated equipment to the offshore and onshore oil and gas exploration, pro duction and refining industry, petrochemical, chemical, industrial and power markets.
Discovered in 1979, Karachaganak is one of the world’s largest gas and condensate fields. It holds an estimated hydrocarbons ini tially in place (HIIP) of 9 billion barrels of condensate and 48 tril lion cubic feet (tcf) of gas, with estimated gross reserves of over 2.4 billion barrels of condensate and 16 tcf of gas.
In 1997, Venture partners, including Shell, Chevron and KazMunaiGas set out with the former State Oil & Gas Authority to develop the vast reserves of Karachaganak. They signed a Final Production Sharing Agreement (FPSA) which will see the partner ship operate Karachaganak until 2038. Since signing this agree ment, they have invested over $28.3 billion in the operations and have applied industry leading hydrocarbon technology to one of the world’s most complex reservoirs.
In 2021, hydrocarbon production in Karachaganak reached 134.05 million barrels of oil equivalent. 10 billion cubic metres of gas, which is approximately 52.7% of the total gas produced, was re-injected to maintain reservoir pressure.
Bell’s next generation five-seater helicopter, the Bell 505, fuelled with Neste MY Sustainable Aviation Fuel (SAF) has taken off at Seletar Airport in Singapore for a demonstration flight. This is the first ever helicopter flight fuelled with SAF in Southeast Asia.
This remarkable milestone was achieved by a close cooperation between Bell, Safran Helicopter Engines and Neste, with Jet Aviation and Shell Aviation enabling the blended SAF to be uplifted through their facilities at Seletar Airport. The demo flight showcases the commitment of the business aviation community to the industry’s ambitious emissions reduction goals and adopting SAF as a key ele ment in helping achieve these goals.
Neste MY Sustainable Aviation Fuel reduces greenhouse gas emissions by up to 80% over the fuel’s life cycle compared to fossil jet fuel use. SAF can currently be used up to 50% blended with conventional jet fuel, and Safran helicopter engines are already certified to operate on up to 50% SAF.
“Bell has been in Southeast Asia for more than 40 years and we are proud to operate the first SAF helicopter flight here on our Bell 505,” said Jacinto Monge, managing director, Asia Pacific, Bell. “Today’s flight demonstrates our commitment to incorporating SAF into our customer demonstration aircraft globally, supporting Textron’s Achieve 2025 Sustainable Footprint goal for 20% reduc tion in greenhouse gas emissions.”
“We strongly believe in SAF, as it contributes to significantly reducing CO2 emissions,” said Valerie Patuel, Managing Director of
Safran Helicopter Engines Asia, CEO & Country General Delegate of Safran Singapore. “As with all our helicopter engines, the Arrius 2R, is already certified to operate on up to 50% SAF, and we are fully ready to assist all Bell 505 operators worldwide in their transition from conventional fossil fuels to SAF. With our products, we are proud to play an active role in the development of decarbonisation initiatives in Asia Pacific.”
“The ambitious emissions reduction goals of the aviation industry can only be achieved through wide-scale adoption and use of sus tainable aviation fuel,” said Sami Jauhiainen, Vice President APAC, Renewable Aviation at Neste, “and cooperation across the stake
holders in the aviation ecosystem. With today’s demo flight, we showcase that SAF can safely and easily be used also for helicopter operations. I am also proud that this milestone was achieved in Singapore. With the expansion of our Singapore refinery nearing completion, and the ongoing modification of our Rotterdam refinery, we will be able to produce up to 1.5 million tons of SAF by the end of 2023, ready to support aviation globally and in the Asia-Pacific region.”
SAF delivers the performance of conventional jet fuel but with a significantly smaller carbon footprint on a life cycle basis. Neste MY SAF is produced 100% from sustainably sourced, renewable waste and residue raw materials, such as used cooking oil and animal fat waste. Neste MY Sustainable Aviation Fuel is a today solution, commercially available and in use worldwide.
The ambitious emissions reduction goals of the aviation industry can only be achieved through wide-scale adoption and use of sustainable aviation fuel
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bphas announced that it has agreed to sell its upstream business in Algeria to Eni, the Italian energy company. This includes its interests in the gas-producing In Amenas and In Salah concessions. bp holds working interests of 33.15% and 45.89% in the In Salah and In Amenas projects respectively. Both are operated by joint ventures co-owned by bp, Equinor and Sonatrach.
Anja-Isabel Dotzenrath, bp’s executive vice president in gas & low carbon energy, said: “bp has worked successfully with Algeria and our partners over almost 30 years, developing and supporting operations on two major gas projects for the country. We believe this agreement represents a good outcome for bp and Eni and for Algeria.”
Karim Alaa, bp’s senior vice president for Egypt, Algeria and Libya, added: “We are very proud of what bp has achieved in Algeria over many years and have appreciated the support of the government over this time. With its significant existing presence in Algeria and wider region, we believe Eni will be well positioned to work with partners and the government as they continue to take these assets forward.”
The In Salah Gas joint venture has developed seven gas fields in the Southern Sahara, approximately 1,200 kilometres south of Algiers. Production began in 2004 with a second phase starting up in 2016. The In Amenas joint venture produces gas and nat
ural gas liquids from the Illizi basin in south-eastern Algeria, with first production coming in 2006.
The companies have informed partners and the relevant Algerian government entities of their agreement. The transac tion is subject to government approvals, partner pre-emption processes, and competition clearance processes.
bp has been a major investor in Algeria for almost 30 years and has helped deliver two major gas developments at In Salah Gas and In Amenas, accounting for up to 15% of Algerian gas exports. Both are non-operated joint ventures, managed in partnership with Equinor and Sonatrach, the national oil com pany of Algeria.
The In Amenas joint venture is one of the largest wet gas projects in Algeria and involved the development and produc tion of natural gas and gas liquids from fields in the Illizi Basin in south-eastern Algeria. First gas was produced at In Amenas in 2006.
The In Salah gas joint venture is one of the largest dry gas jointventure projects in the country and involves the development of seven proven gas fields in the southern Sahara, 745 miles (1,200km) south of Algiers. The first phase of development came on stream in July 2004 with the second phase, the In Salah Southern Fields project, coming online in February 2016 and developing the remaining four fields.
White River Energy Corp has announced that Ault Energy, a wholly owned subsidiary of BitNile, and White River Operating LLC, a wholly owned subsidiary of White River, have successfully completed drilling a 9,531 foot well, ‘the Harry O’Neal 20-9 No. 1’ on White River’s oil and gas mineral lease in Holmes County, Mississippi. The O’Neal No. 1 Well was logged by an independent Fortune 500 oilfield services company and had productive oil results across multiple pay-zones in the Smackover formation. The partner ship plans to jointly drill approximately 100 oil wells over the next five years.
WR Ops has commenced the completion process on the O’Neal No. 1 Well and anticipates pumping the O’Neal No. 1 Well in mid-October 2022 as an economically viable oil well.
“The recent success of our development drilling strategy at Horseshoe Lake in Holmes County, MS via our vertically inte grated business model is an exciting first step in our relation
ship with Ault Energy,” stated Randy May, Executive Chairman of White River.
BitNile Founder and Executive Chairman Milton “Todd” Ault, III, who also serves as the Manager of Ault Energy, said, “We are pleased to announce the successful drilling of an economically viable producing oil well. My team and I conducted a site visit to the in-progress drilling project in September 2022, and we were very impressed with White River’s drilling operations, manage ment, and geological capabilities. We look forward to partici pating in additional drilling projects with White River over the next several months.”
White River’s next drilling project is expected to be a 14,000 ft deep vertical oil well in the Wilcox, Austin Chalk, and Tuscaloosa Marine Shale formations in the Coochie Oil Field in Concordia Parish, LA. White River also plans to drill three consecutive deep vertical drilling projects at approximately 13,000 ft in the Rodessa and Hosston sand formations on the Pisgah Field Lease in Rankin County, MS.
Peregrino phase 2 will extend the Peregrino field life to 2040.
Phase 2 adds 250-300 million barrels of oil, while at the same time halving expected CO2 emissions per barrel over the field remaining lifetime.
“I am thrilled that we have started production from the new Peregrino C platform. Covid-19 has made Peregrino phase 2 a chal lenging project, and I want to thank everyone involved for delivering the project with excellent HSE results,” said Geir Tungesvik, Equinor’s executive vice president for Projects, Drilling & Procurement.
Peregrino phase 2 consists of a new platform with drilling facil ities and living quarters tied in to the existing Peregrino FPSO, as well as a new pipeline importing gas to the platform for power
generation. The new platform will provide 350 long-term jobs off shore and onshore in Brazil.
The project was on schedule for planned start-up late in 2020 when Covid-19 hit the project hard, leading to cuts in the work force several times in the crucial and normally labour-intensive hook-up phase. Still, Peregrino phase 2 is delivered within the original $3 billion cost estimate.
In line with Equinor’s low carbon strategy, measures have been taken to reduce CO2 emissions from the Peregrino field. By switching from diesel to gas for power generation on Peregrino C, phase 2 will avoid 100,000 tonnes of CO2 emissions from the Peregrino field per year.
C-Innovation (C-I) and Grand Isle Shipyard, LLC (GIS), two strategic oil and gas industry partners, have been awarded a plug and abandon ment contract by Helix Alliance Decom, LLC to provide pre-feed services for the decommis sioning of three offshore plat forms for a major deep-water client.
In Phase I of the project, C-I provided ROV services to deliver marine water inspection and integrated the data within MODS software to provide live operations for the client operating fixed leg platforms in 165 – 200 feet of water. The GIS Aerobotics Drone Division provided aerial inspection services. The joint technical innovations aim to determine the current condition of the wells and the facility, enabling the timely and cost-effective decommissioning of the wells, platform and jacket for each of the three platforms.
The partnership harnessed its technology to offer increased safety margins. All of the inspections were able to be completed via line wireless transmission from the back of the boat within a connex box without requiring the deployment of personnel on ropes.
Michael MacMillan, operations manager, C-I, stated: “The equipment used took very little time to mobilise and provided subsea operations in a safe and efficient manner while using a limited number of personnel. The ability to launch this type of ROV from almost any asset not only allows operations to be efficient but also mitigates safety risks while practically elimi nating the traditional risks associated with the launch and recovery of an ROV.”
DaCoda Bartels, GIS aerobotics division manager and pilot, said: “The GIS drone can safely operate from up to 100 ft away from the asset as we have the camera stabilisation technology to zoom in on an area of interest. Most of these areas are not accessible by human personnel. We are able to live stream the drone’s camera view in real time to make informed deci
sions on the spot. It’s a super-fast and super safe alternative, where the only potential risk is to the equipment rather than the personnel.”
MacMillan added, “Our partnership with GIS enables C-I to continue to demonstrate our flexibility to provide resources and equipment in a non-traditional scenario. The availability of equip ment and personnel for these types of scopes is more important now than ever, due to the demands of today’s market.”
Interesting
unusual oil and gas facts from around the world fact
Around 4% of the world’s shipping cargo is oil.
The world record for the highest flow rate from a vertical gas well was accomplished in 2009. Measured in Papua New Guinea, the flow rate equated to 705 million cubic feet per day.
The USA uses the most oil, consuming an average of 19.8 million barrels per day in 2021.
The greatest distance driven on a single tank of fuel is 1,581.88 miles. This was accomplished in 2011 by Marko Tomac and Ivan Cvetkovic who were driving a Volkswagen Passat. It averaged 91.71 UK mpg.
In the UK, overall coal production fell to 190,000 tonnes in the second quarter of 2022. This is a reduction of 48% when compared to the same timescale in 2021.
ULCCs are the largest tankers in the world, with a capacity of four million oil barrels.
Drilling mud is used to clean drilled holes of loose rock chippings. To accomplish this, the mud is poured into the hole and draws the debris to the surface.
1982 had the highest recorded amount of oil and rigs. The count came to 1,509.
The West-East gas pipeline is the largest in the world. With an impressive length of almost 5,480 miles.
The shipping industry uses more than 300million tonnes of fossil fuels each year. This is 5% of the global oil production.
Every problem is a gift we would not grow without problems “ “ Anthony Robbins
SLPE’s design for TenneT’s Hollandse Kust (west Alpha) substation jacket is now fully installed in the North Sea. SLPE worked on the design of the jacket and foundations since last year, when it was awarded the detailed design by Iemants (subsidiary of Smulders) in a joint venture with EQUANS, who is deliv ering the offshore substation for Dutch devel oper, TenneT. The Hollandse Kust jacket is 49 m high and weighs 2,200 tonnes. Built at the Heerema yard in Vlissingen, the jacket is installed in 28 m water depth and will sup port a topside of approximately 4,000 tonnes.
Decom Engineering (Decom) is developing a new lighter Chopsaw capable of cut ting piping and infrastructure in excess of 30”, following a successful project on the Pioneering Spirit heavy-lift vessel on behalf of offshore contractor Allseas. Decom was part of the project team commissioned to remove Repsol Norge’s 30,000-tonne Gyda platform in the North Sea - providing cutting expertise to safely remove conductors from the seabed. Conductor removal is a new market for Decom and following the Gyda project, the firm invested in developing an updated Chopsaw to be manufactured primarily from aluminium and capable of operating in restricted spaces.
A manifesto to how much can be saved by reducing weight and resource usage, Citroën and BASF have unveiled their all-electric concept car oli. With speed lim ited to 68 mph and acceleration close to the classic 2CV model, the concept car gains a wider range and significantly improved battery lifespan. Various compo nents have been radically reinterpreted and constructed by using materials in a different context. The open lattice structure provides natural air flow, replacing all ventilators in the seat. Many of the new components are also designed and manufactured from materials from the same chemical product family.
What’s new in the oil and gas industry??Decom Engineering dives into subsea Chopsaw development
Clariant Oil Services, a leading provider of chemical solutions, has launched the D3 PROGRAM to introduce more sustainable solutions to the oil and gas industry. The initiative leverages advances in the oilfield, helps reduce carbon emissions and enhances safety, while avoiding disruptions to ongoing operations. D3 is comprised of three key pillars. Decarb utilises nanotechnology and ingredients from renewable sources to reduce carbon emissions in customers’ operations; Densify facilitates logistics improvements and furthers sustainability initiatives through a new applica tion with concentrated products; and Detox incorporates formulations with more environmentally acceptable raw materials.
Hertz and bp announced the signing of a memorandum of under standing (MOU) for the development of a national network of EV charging stations powered by bp pulse, bp’s global electrification and charging solution brand. The MOU sets the foundation for Hertz and bp to drive the future of mobility and accelerate EV consumer adoption. The agreement also involves the management of Hertz’s charging infrastructure by bp pulse and the customisation of its Omega software to ensure Hertz’s growing fleet of electric rental cars are recharged quickly and efficiently between rentals.
The energy comany St1 is planning the first synthetic methanol plant in Finland. The project aims to produce renewable synthetic methanol to replace fossil fuels used in maritime and road transport. The plant will produce about 25,000 tonnes of synthetic methanol per year. Synthetic methanol is an important future low-carbon fuel. The plant will use the carbon dioxide emissions from limestone raw material at a nearby cement factory. The other raw material needed is green hydrogen produced in an electrolysis process. Synthetic methanol is produced in the synthesis of carbon and green hydrogen. The waste heat generated will also be used in the district heating network of the local area.
Clariant Oil Services launches D3 PROGRAM to support carbon reduction and sustainability
sms alderley ados wika middle east fze arkos field services brimmond chesterfield special cylinders gulf commercial group engineering services dhss
Based in the east of England, SMS Alderley has over 20 years’ experience developing and manufacturing hydraulic and electrical control systems for the energy sector. Managing Director Dave Howlett highlighted new projects at SMS and the benefits of teamwork in conversation with Phil Nicholls.
move that could see eastern England become a global energy superhub, Norfolk-based SMS recently announced an agreement with climate technology company Levidian, from Cambridge. This project aligns with the SMS strategic focus on low-carbon technologies with international potential.
“As a sign of the changing nature of the energy sector, SMS signed an exciting MoU with Levidian Nanosystems Limited,” explained Managing Director Dave Howlett. “The LOOP device transforms methane into hydrogen and graphene. The collaboration sees SMS provide Levidian’s LOOP systems with support services and ancillary systems.”
SMS began trading in 1999 in Great Yarmouth on the Norfolk coast, providing hydraulic maintenance services to the North Sea energy industry. In 2003, SMS was acquired by Alderley, an independent solutions provider at the forefront of the oil and gas industry. By being part of the larger Alderley Group, SMS enjoys greater global reach.
“We are headquartered in the East of England,” Mr Howlett said, “at Gorleston-on-Sea in the borough of Great Yarmouth. SMS moved to our purpose-built facility in 2015, where we have design, manu facturing and testing facilities for new and refurbished systems, and a n aftermarket services division which covers offshore deploy ments, onshore repairs, inspections, obsolescence management, spare parts provision, and hose assembly.”
Recently, SMS has repositioned the business focussing on hydraulic and electrical expertise not just within the oil and gas industry but other industries forming part of their energy transition initia tives. Broadly, the core hydraulic products SMS supplies are hydraulic power units, intervention and workover control systems, chemical injection units and wellhead control panels. On the elec trical side, SMS designs and manufactures an extensive range of safe and hazardous area control systems and automation panels.
Titan Enterprises supplies high-pressure Oval Gear flowmeters for petro chemical related processes where flow measurement is fundamental in upstream, midstream and downstream segments of the Oil and Gas industry.
Titan’s Oval Gear range of flowmeters offers excellent chemical resistance and includes ATEX compliant models, designs pressure tested in-house up to 1,200 bar, and devices with intrinsically safe options for use in potentially explosive atmospheres.
For technical specifications of Titan’s full Oval Gear flowmeter range, please visit: www.flowmeters.co.uk/oval-gear-flow-meters
S&G FabricATIONs LowESTOft LTD specialISES in bESpoke fabricATIONs TO EOG, RENewabLEs,ENvironMENtal FOOd FacTOry ARchITectural AND ConSTrucTIOn PHArmaceuTIcal AND packaging secTOrs. S&G coNTinuES TO expAND, DEVEloping ITs operATION AND servicES in rESponse TO THE growing DEmANDs OF THE iNDuSTriES IT serVEs. MORe recENTly, S&G HAS specialISED in manufacturing bESpoke STainLEß STEEl HPUs, WCPs AND TUTU fabricATIONs, OFTEN FOR use OFfshORe.INCLUDING CNC PUNCHING, AND SITE SERVICES.QualITy OF servicES AND manufacture IS secoND-TOnone AND welding wORk IS cARriED OUt TO ASME 1X, BSEN 1564-1, AWS AND NORsok M601 aCCrEDITATION.A majOR STrENgth OF S&G IS THE company’s abilITy TO wORk TO budget AND TO mEEt DEadlinES.We lOOk FORwARd TO hEAring from aLL exISTIng AND prospecTIVE new cuSTomers wITh THEir requireMENts.
Further services from SMS include digital solutions such as the Inspection Manager™ system which supports inspectors or admin istrators in their duties. The Maintenance Manager software offers similar digital support for project managers and technicians. These digital solutions are offered alongside the extensive portfolio of aftermarket services outlined above.
SMS has 80 employees at its Gorleston-on-Sea site, but also benefits from the depth of expertise within the Alderley Group. The group also operates large manufacturing facilities in Dubai and Saudi Arabia. These facilities all support localisation, offering manufacturing and aftermarket services close to customers.
Maximising the advantages of Alderley’s established networks has been key to increasing SMS’ global reach. Throughout what has been a difficult time globally, SMS has fast tracked some key initia tives; gaining access into different markets within the energy sector and globalising the company’s hydraulic business.
It’s this foresight and agility by the entire team that’s led SMS to where they are today. SMS will see its order intake increase by over 120% against forecast. This trend looks set to continue into 2023.
“Our most recent milestone is the successful launch of our global hydraulic business,” Mr Howlett explained. “This was not an overnight result breaking into adjacent market sectors in different regions where existing competition has been active for several years: SMS deployed a product manager in the Middle East who studied the market dynamics, gained customer insight and analysed how to penetrate and disrupt the market. This all amounted to a lot of hard work over the last 12-18 months.”
Further potential growth at SMS arises from its recent partnership with Levidian. The ground-breaking LOOP device from Levidian is a rapid decarbonisation device designed to accelerate the world’s transition to net zero. LOOP seamlessly docks with existing infras tructure to strip carbon from gas flows, helping businesses to
decarbonise instantly. The process creates two products: hydrogen, a clean energy source powering the societies of tomorrow; and net zero graphene, a material reshaping the world we live in.
“For us, this collaboration aims to open up other market opportu nities,” said Mr Howlett. “The oil and gas industry has historically found it difficult to manage methane emissions. Levidian’s LOOP device fits in perfectly with our core customer base. This ground breaking device will be vitally important in our collective fight against climate change.”
Many of the projects at SMS further contribute to the battle against climate change. SMS is working with a multinational utili ties company to develop hydrogen solutions for the future grid where hydrogen may be blended into the domestic gas supply net work. The company is diversifying and improving its produced water treatment hydro-cyclone technology to be even better at removing contaminants from the wastewater created by hydro carbon production.
Research and development has always been a strength at SMS. Mr Howlett acknowledged that SMS, as a relatively small company, needs to fight for market position and take a few risks by exploring different business opportunities and new technological possibilities.
The essence of an SMS project is teamwork, within both the com pany and the wider Alderley Group. As an example of this teamwork in action, Mr Howlett cited an ongoing project in the Middle East:
“This project is bringing together many aspects of the SMS Alderley teams. We have a new hydraulic system to supply and install, upgrade existing systems and deploy technicians to pro vide maintenance and inspection services. This operation is being managed from the UK and the Middle East with support from our Indian entity.
“It is a real team effort: hydraulic, electrical, project management and supply chain from across the world. The team is successfully
delivering this programme, showing the collaboration possibilities when the whole group comes together to work on a single project.”
The SMS team are supported by close relationships with part ners and suppliers. Recent volatility in the global supply chain remains the largest challenge facing SMS. The core principles of open communication and honest dialogue which built these crucial partnerships are the same skills needed to resolve the challenges arising from the disrupted supply chains. SMS also includes customers in these conversations, benefitting from mul tiple partners evaluating a problem and proposing solutions.
“I am optimistic about the outlook,” Mr Howlett said. “We all need energy for our lives and to drive our economies and we also know that we need to decarbonise. But more decarbonisation of the energy sector doesn’t mean less economic opportunity. It doesn’t work like that, and in fact the opposite is true.
“For this reason, the energy sector will become more important than ever as a driver for economic growth and SMS is well posi tioned to respond to this challenge with its focus on innovation and capacity to provide.
“We have several ongoing initiatives to enhance our market position in both the traditional and the low-carbon sectors,” Mr Howlett explained. “Our consultancy business works hand-inhand with industry leaders to ensure the infrastructure is hybrid and ready. The digital team are creating industry-leading software and the aftermarket team are prolonging the life of critical equip ment. Meanwhile, the whole team continues to deliver great cus tomer service.”
The future of SMS is built upon the quality of the team. “There are fantastic people across the business,” concluded Mr Howlett, “each person makes a positive impact. From the early days of SMS, we have always strived to be the best at what we do. We have an inquisitive team who have a thirst to innovate, drive out costs and never fall into the trap of “we always do it like that”. The quality of the SMS team has kept the company fresh and agile.” n
Abu Dhabi Oilfield Services (ADOS) is a UAE-based technology and services provider to the oil and gas industry from upstream to end-user downstream. Andy Probert sat down with CEO Zuhair Shehada to discuss the company’s evolution as lead support for local and international clients, and its growth ambitions.
Oilfield Services (ADOS) moves quietly into its 50th year of operation, Zuhair Shehada is a living embodiment of what it stands for. The mechan ical engineer has served the company for 38 years and, since 1995, as its CEO.
The Canadian, who arrived on Abu Dhabi’s shores in 1971, shortly before it became part of the United Arab Emirates and a year before ADOS’ birth, has seen much of the landscape irrevocably change.
That has given Mr Shehada unique experience that he has metic ulously used to guide ADOS in becoming a leading technology and services provider to the region’s energy industry.
From exploration, drilling and production to refining, processing and distribution, he has overseen the highs and lows of company, industry, and country but never tires of looking to take ADOS to new levels.
The company has grown to operate from various locations throughout the UAE and employs over 1,700 people, all aiming to optimise clients’ operational performance and maximise the value of their resources.
“For us, it has been step-by-step growth beginning with back-up services to Shell and BP, to downhole and drilling services, and then expanding to support for rotating machinery, instrumenta tion and marine services,” he outlined.
ADOS strengthened its portfolio by establishing Klinger Middle East, acquiring Safe Sea Services and forming WellSlot Tubular Slotting & Perforating. It became the first oilfield services com pany to establish a manufacturing, service and training facility in Ruwais, the heart of the UAE’s petrochemicals and processing hub.
From Mussafah, Ruwais, and Jebel Ali manufacturing facilities, totalling 300,000 sqm, the company supports the drilling and pro duction sector with a full range of threading, machining and tool manufacture from subsea to surface.
The ADOS Machine Shop, for example, is one of the largest in the GCC. Lathes and CNC hollow spindles allow for extensive turning capabilities. Its horizontal and vertical borers, with a capacity of 12 tons and 6 tons, can handle a majority of components including heat exchangers, tube sheets, blow-out preventers and valve bodies.
“We now offer comprehensive products and services from seismic survey consulting to the equipment used in petrol stations, and everything in between,” Mr Shehada declared.
ADOS has also entered partnerships with international companies to provide new technologies to the region. In 2021, it signed an agreement with InflowControl to bring Autonomous Inflow Control Valve (AICV®) technology to Abu Dhabi.
Norway’s InflowControl designs and manufactures industryleading and patented inflow control technologies that have been field-proven to dramatically improve well performance, reduce water cut and gas oil ratio, and increase oil production in both onshore and offshore wells.
With over 160 installations worldwide and a good volume of these in wells deployed within the GCC, the fully autonomous valves have helped operators reduce their operational risk, optimise their total cost of ownership, and lower associated production emissions.
Together with its subsidiaries, ADOS Engineering Industries and WellSlot, InflowControl and ADOS will enhance the in-country value relating to the manufacturing, assembly, and installation of the AICVs in the UAE.
Mr Shehada added: “We are excited about our new partnerships with industry-leading technology providers such as Inflow Control to help our clients maximise the value of their current and future resources. We look forward to working with our established and new partners to bring more enabling technologies to the UAE market.”
He reflected: “We know how the market is moving, and how the challenges of the last couple of years have contributed to the con tinued disruption of the global supply chain. However, despite these difficulties, ADOS has not been negatively affected: I am proud to say we have been over-performing. We remain a highly dynamic and diversified company that is always forward-looking.
“ADOS has brought new technology and innovation that creates added value to the market. If ADOS is not bringing these products forward, we are involved in R&D with our overseas partners.
“There is a lot of focus on artificial intelligence and digitisation, and with the additional pressures to transition to green energy, ADOS is working on several projects to bring new solutions to the region and contributing to the in-country added value.”
Zeroing in on ADOS’ plans for the next three years, Mr Shehada commented: “The oil and gas industry has been and will remain an essential component for the energy mix and transition for years to come. Yet we remain ever alert, understand future trends, and want to be pioneers in catering to the ‘green energy’ requirements for the good of the region.”
He expanded on how ADOS makes a difference to its clients: “We are very serious about our business, work harder than our competitors and are passionate in being client-focused.”
Global challenges have also increased demand for in-country values and strategies to minimise disruption. “We are listening to clients, and in general, they have put pressure on local companies to implement various strategies.
“ADOS believes in utilising local resources and has been very active in the so-called ‘Emir-isation’ of the workforce. It is probably the best way to keep growing, aided by recruiting local graduates and integrating them into the business.
“You cannot do business remotely from 10,000 miles away in this industry. You need to be in good proximity to the client. The
closer you are, the better the outcome. Recruiting local resources is important if you are dependent on the rapid deployment of prod ucts and services.”
He added: “Our long-term relations are built on trust, trans parency, commitment and integrity. We have gained credibility and reputation because we refuse to compromise on these core values. Our success has not come overnight, but by building it over the years.”
Mr Shehada concluded: “We continue to focus our efforts on innovation and diversification. With innovation we can positively impact the market and ADOS will soon bring significant break throughs to the industry. By remaining dynamic, we confidently look to the next 50 years of success.”
n
WIKA Middle East has been a mainstay in supplying instruments in the field of measurement technology to leading energy and general industry players in the GCC region since 1998.
Highly calibrated to meeting partners’ needs, the subsidiary firmly reflects and attests to the principles of its global leading, family-owned parent company, the WIKA Group.
“We are a strong and reliable partner in industrial measurement technology, offering the greatest flexibility, the highest delivery performance, and have one of the broadest portfolios of high-pre cision instruments,” affirmed Tino Reppe, Senior Vice President, WIKA Group.
The Middle East entity, with a 100-strong team, is centred in Jebel Ali in the UAE, with sales and manufacturing support, and similar operations in Saudi Arabia.
“Around one-quarter of its sales are based on local manufac turing, and performance has grown year-on-year for the past two decades,” confirmed Mr Reppe.
“We also continue to increase our footprint locally in industries such as oil and gas, petrochemical, water and power. Additionally, we are also gearing up service provision to our partners to support their ambitions, reduce their costs, offer quick turnarounds and improve process efficiency.”
WIKA Middle East plays a significant part in the WIKA Group, which globally has a workforce of over 10,200 people across 43 subsidiaries, with manufacturing facilities in Europe, China, India, North America and South America, etc.
With a €1 billion turnover, WIKA is run by the third genera tion of owners. The company is a worldwide leader in pressure, temperature, force and level measurement. WIKA also leads in the fields of flow measurement, calibration, SF6 gas solutions and digitalisation.
WIKA enjoys 75 years of experience and supplies over 50 million quality products, both standard and customer-specific solutions, in batches from one to over 10,000 units. Such a high degree of exper tise and experience has enabled WIKA Middle East to establish the highest reputation among the region’s leading providers.
The WIKA UAE base serves clients such as ADNOC, Kuwait National Petroleum Company, Kuwait Oil Company and Petroleum Development Oman. Additionally, its Saudi manufacturing facility supplies temperature and pressure technology to Saudi Aramco.
Mr Vaishak Mantodi, Sales Manager, MRO/Service, added: “By offering local support and offices, we can bring added value to a partnership and offer exceptional service to our clients. We want to become a real solutions provider, offering comprehensive IIOT solutions in the future.”
Today, WIKA has the expertise to develop solutions that are IIoT capable. IIoT capability is achieved either by integrating the Bluetooth module into an existing WIKA product or by combining
an existing product with an output signal with Netris®, the batterypowered GSM telemetry unit. At the customer’s request, such solu tions can interact with cloud-based systems for remote monitoring.
WIKA also has ongoing evaluations of a few cellular gateways for cryogenic gas logistics. In addition to a comprehensive product portfolio and dedicated customer-engineered solutions, WIKA also offers complete IIoT solutions to round off its range of ser vices, explained Mr Shahzad Syed, Business Model Director, MRO/Services.
The company has also introduced new accessories for high-pres sure measurement. It now has a series of connection adapters and couplings in its portfolio that are designed for applications with pressures from 15,000 psi to 60,000 psi.
The products enable safe connection to valves, nipples and fit tings, even in confined installation situations such as in test benches and control cabinets. They are available in all common variants, and the one-piece construction and high-quality materials ensure a high leak tightness and long service life.
WIKA has also introduced a new industrial high-speed pressure controller, the newest device in Mensor’s line-up of precision pres sure controllers that can perform end-of-line three-point verification in ten seconds.
With an innovative regulator, the device has been designed for fast pressure control in industrial environments. It can perform
25% pressure increments in under four seconds with a 0.020% FS accuracy. The device maximises throughput in industries such as oil and gas.
These advances also come at a time of continuing investment in WIKA Middle East’s UAE and Saudi bases to help increase capabili ties and capacities.
Supporting region for the long-term WIKA Middle East has maintained its performance and order levels despite the Covid years. Mr Vaishak explained: “Our perfor mance hasn’t dipped because we have a very strong local presence. “We are regarded as a reliable partner with proven product quality evolved over decades that delivers effective solutions. And good relations with clients are maintained by mutual trust, transparency, good communication, and joint planning.”
Mr Reppe added: “In the future, certainly in the Middle East, WIKA as a manufacturer intends to be a part of the development of hydrogen solutions, and we see gas as a bridge-energy that will help clients immensely.
“While foreseeing many potential opportunities, WIKA intends to be instrumental in the digitalisation trends and product advance ment to support our partners on their decarbonisation journeys.”
He concluded: “WIKA has been entrenched in the Middle East as a partner in helping to bring jobs, add value and support local economies for future growth. With all that in mind, we aim to bring more success to the region. n
Texas-based Arkos Field Services is an experienced compression and equipment service partner, specialising in all brands of natural gas compressors and engines. President Bill Sayre related recent events at Arkos and highlighted the depth of knowledge within the team, in conversation with Phil Nicholls.
this year, Arkos Field Services was recognised as an authorised ser vice provider for Zahroof Valves Inc, manufacturer of the innovative StraightFlo valve for reciprocating gas compressors. This partnership expands even wider the range of services offered by Arkos.
“Being an authorised dealer is really about investing not only in the inventory that we need to make the product available, but also how we’re making an investment in our people,” explained President Bill Sayre. “At Arkos Field Services, we train our sales people to understand Zahroof’s values and can communicate these details with the cus tomer. We also train our technical people our team of field service technicians.”
Arkos was formed in 2014, with a man agement team that has decades of industry experience. At the close of 2016, Swiss-based Burckhardt Compression took a minority
stake in Arkos. This partnership with the worldwide market leader for reciprocating compressor systems – and the only manu facturer and service provider that covers a full range of reciprocating compressor technologies and services – brought great depth to the Arkos range.
Finally, in 2019, Burckhardt celebrated its 175th anniversary and purchased the remaining share of Arkos, bringing it into the fold as a fully owned subsidiary. The cur rent organisation of Burckhardt Compression is divided into the Systems and Services divisions. While the Systems division is focused on the sale of new Burckhardt com pressors, the Services division will main tain and repair any brand of compressor.
The parent Burckhardt Group has a global operation, but Arkos is focused on the US market with 160 employees spread across 11 locations.
Arkos sites are based around the Permian Basin, with additional facilities in Oklahoma, Pennsylvania, Louisiana and California.
“We have a very broad range of what we offer,” Mr Sayre said. “In our facilities, we can do revamps, reconfigurations of compressors, make-ready services and inspections. Arkos does everything associ ated with servicing a customer’s asset. This is whether the client is an end-user, consumer or producer, a midstream com pany or a contract compression rental company. If you move gas down the pipeline into the downstream business, then we provide the same services.”
This wide portfolio of services is further enhanced by the partnership with Zahroof Valves. The StraightFlo valve from Zahroof is marketed as a replacement for conven tional valves and consists of standard mod ules or cartridges held stationary between a valve seat and carrier.
Arkos technicians are certified as autho rised service providers. While this new part nership helps Arkos offer a greater range of services to clients, it is also another acknowledgement of the depth of knowl edge in the Arkos team.
“Arkos has a full-time, dedicated training department,” explained Mr Sayre, “where we
train on every piece of equipment imagin able. One area that is crucial for us is the basic understanding of mechanical princi ples. Arkos is a third-party certified training facility, which we operate both internally and externally. We bring folks in, assess where they are, then provide the training that will take them to the highest level.”
The depth of knowledge at Arkos enables the technicians to offer exceptional levels of support to the customer, according to Mr Sayre: “We have the technical capabili ties; no matter what brand of compressor, our team can always help the customer. Maybe they need a revamp, perhaps
a process requires updating, or an effi ciency can be gained.
“Our technicians provide the client with a compressor integrity study, where we assess the engineering and analyse the compressor’s operation. We provide the client with a recommendation that will either improve reliability, performance or upgrade the compressor based on the current operating conditions.”
When an Arkos technician visits a client , the compressor could be anywhere up to 25 or 30 years old. Thanks to the level of knowledge and experience within the team, Arkos has the ability to bring the compressor
back online, upgrading with the latest tech nology where required and ensuring that even these older assets remain productive for the client.
To maintain this level of expertise within Arkos is a challenge. While the global supply chain disruption brought many problems, Mr Sayre recognised the diffi culty of sourcing enough skilled staff as a greater obstacle for Arkos. The com pany takes deliberate steps to retain staff with competitive wages and an employee wellness program.
In partnership with sustaining the employees, Arkos also has an eye on broader environmental sustainability. As Mr Sayre observed, a compressor service can have several positive environmental impacts.
“Number one is how longer times between failures means fewer compressor services are needed,” he said. “These are an issue because before a compressor is serviced, the technician must vent the gas into the atmosphere.
“Secondly, most gas compressors in the field today are engine driven. So, if we can fit a new, high efficiency valve into a com pressor, then the client is now moving
more gas using the same horsepower. It’s not just the government driving envi ronmental standards, but our customers are also very focused and conscious of their environmental impact. These invest ments in upgraded control systems allow a client to take their units anywhere in the country, as they are already following the most stringent emission requirements for the compressor.”
Arkos has recently become an Authorised Murphy Provider (AMP) of FW Murphy’s new Engine Integrated Control System (EICS) for Waukesha VHP engines through Spindletop Energy Products’ new program.
Arkos is also an Authorised Genis dealer. Genis has integrated patented cooling tech nologies and controls into their compressor systems which drive efficiency and operational flexibility while also leading
the industry in acquisition cost. Arkos is well positioned to sell and support these compressor systems.
The future of Arkos is closely tied to the parent company Burckhardt Group with a forthcoming rebranding of the US operation under the Burckhardt banner. While this merger will not affect the range of compressors and services offered within the US, it will bring a simplified brand experience for the customer.
Looking to the broader energy sector, Mr Sayre sees opportunities for growth within the sector’s transition: “Even the solar business is positively impacting our compressor business, because we manu facture the hyper compressors used in the creation of plastics for solar panels.
“Hydrogen will be a big part of the energy market, certainly there’s a lot of investment happening there as the hydrogen mobility and energy expands. The focus at Arkos is to support the broader compression market and position our services to supply these new customer demands.
“We have a great team, working for a great company,” Mr Sayre concluded. “One of the exciting things about Burckhardt is that there aren’t many companies around today who have been in business for almost 180 years. Burckhardt Compression clearly has a formula for success. We have a team of skilled employees at Arkos, and everybody is service-minded. Everybody works with a spirit of urgency, getting things done and solving problems. When that is your mindset, the company becomes a great place to work.” n
has been steadily expanding since 1996, starting as part of a global hydraulic hose repair franchise, later moving into manufacturing. After steady growth, Brimmond Group embarked on a programme of consolidation with Pump Solutions being fully integrated into the group in 2018, followed by the absorption of Rigrun Europe in 2022.
Rebranding as Brimmond, the newly-simplified corporate struc ture allows the business to maintain its focus on quality engineering solutions while pursuing ambitious growth plans.
Managing Director Tom Murdoch joined the family business in 2016 after beginning his career as a graduate engineer with an Aberdeen-based subsea engineering company focusing on subsea tooling and projects offshore, West of Shetland. His many summers of work experience at Brimmond, followed by six years working in the business full-time, meant he was well prepared for what the future held.
Brimmond’s purpose-built facility opened in 2015. “We have a single site just outside of Aberdeen in Kintore, Scotland,” Mr Murdoch said, “It’s a 2.5-acre site with a 1,250 sqm workshop and two 20-tonne overhead cranes. Outside, we have our high-capacity testbed facility where we can test marine cranes, winches, and safely carry out ten sion spooling. Seven years later, it’s still a facility we are incredibly proud of.”
Despite global challenges, including the pandemic, Brimmond has continued to achieve and exceed projected business growth. Current turnover at Brimmond is £6 million, the third year in a row with record numbers. It continues to deliver the highest quality lifting, mechanical and hydraulic equipment and services to clients anywhere in the world through four main divisions: rental equipment; design and manufac ture; refurbishment and service; as well as marine cranes.
The range of services from Brimmond includes the design and manufacture of complete engineering solutions in collabora tion with various partners. Successful projects include power units, hydraulic control systems, pump units and so much more. Brimmond engineers also offer spooling services, and a suite of inspection, maintenance and refurbishment services on a broad selection of machines.
According to Mr Murdoch, one of Brimmond’s USPs is the com pany’s culture of high standards at every level: “It’s the quality from the initial design through to the manufacture. If we aren’t proud of it, then it doesn’t leave the workshop. After all, our reputation is built on the quality of our machinery, not on our year-end results.”
With such a diverse portfolio of equipment and services, Mr Murdoch found it difficult to highlight just a single project to represent Brimmond’s capabilities.
“We have a 175-tonne meter crane in our rental fleet,” he said, “It recently returned from an 18-month contract assisting with the decommissioning of a North Sea platform. Within 10 days, our workshop technicians serviced and load tested the crane and it was back out on hire again, assisting with a concrete mattress decommissioning project.
“Another exciting project was the testing of a 110kW electric hydraulic power unit. This will be permanently installed on a windfarm installation vessel. The unit powers a device used for upending the monopile from the horizontal stack on the offshore vessel into the vertical position, in preparation for installation.”
In early 2022, Brimmond was one of just 20 companies chosen for the Fit for Offshore Renewables Programme (F4OR) from the Offshore Renewable Energy Catapult. Funded by the Energy Transition Zone
and delivered in partnership with the Nuclear AMRC and Opergy, F4OR will help develop Brimmond as a provider of equipment and services to the renewable marketplace.
“We have just completed our first F4OR audit which turned out to be a rather intensive programme,” explained Mr Murdoch. “This involved a business excellence audit and a company knowl edge audit, all designed to increase Brimmond’s knowledge within renewables.”
Brimmond’s participation in the F4OR programme is readying the company for the growth of the renewables sector.
“From a personal and business perspective, we understand that renewables are absolutely critical to our future,” Mr Murdoch explained. “Aberdeen already has a very strong reputation as a hub for offshore, particularly offshore wind, so we believe we are ideally suited to pursue this opportunity.”
Alongside the rebranding of Brimmond and the accompanying reorganisation, Mr Murdoch was appointed as the new Managing Director earlier this year. Preparing the company for the growth of renewables was just one part of Mr Murdoch’s vision for Brimmond.
“Firstly, I plan to continue to build on the reputation we have established over the past 25 years for building high quality, reli able and safe equipment,” he said.
“Secondly, I plan to lead our new business strategy. Up until now, the business has grown organically. Looking forward, our strategy is to grow our market share in the oil and gas industry and use our transferrable skills and experience to develop business in complementary sectors – marine, defence, aquaculture, and off shore renewables.”
As part of this business strategy, Brimmond works in close partner ship with its local network of suppliers. “The north east of Scotland has one of the most impressive supply chains anywhere in the world,” Mr Murdoch explained. “The manufacturing capability and capacity in the region is incredible. We try to source the majority of our products from those around us – both to support our local economy but also to minimise unnecessary carbon miles.”
By relying upon local suppliers, Brimmond enjoys the benefits of a short supply chain. This has cushioned the company from the worst effects of ongoing global issues. While delivery of imported goods has been delayed, Brimmond remains in a good place to ride out this particular storm.
Global supply is just one of the macro challenges facing the energy industry: another area which impacts every business in the sector is fluctuating government policies for the oil and gas industry, compounded by an uncertain political landscape. Current interest rates suggest a looming recession, but Mr Murdoch is optimistic.
“Brimmond is in a stable position because right now, with the growing focus on a safe, reliable and secure supply of energy, we have seen a number of contract wins within our core sector but have also already seen strong return on our diversification into adjacent sectors. Both areas of the business are doing well and it has refocused our attention on the importance of diversification.”
Brimmond’s unwavering focus on high quality engineering is reflected in the make-up of its employees, with a combined 75% of the team ‘on the tools’, either in the workshop or the engi neering department.
Mr Murdoch reflected: “I’m an engineer at heart and love every part of the business. From concept design through to Factory
Acceptance Testing, I find the whole process hugely interesting. There is no better feeling than going offshore and successfully installing a brand-new piece of equipment that you have person ally designed. It’s such a rewarding experience.”
This passion at the helm of Brimmond stands the business in good stead for an exciting future. n
With a dominant presence in high-stakes pressure systems supply and over a century of market leadership, Chesterfield Special Cylinders remains one of only a few such companies worldwide in this challenging field. A leadership team drawn from across its parent company, Pressure Technologies plc, spoke to Richard Hagan about how the group has built on its impressive legacy and continues to remain at the pressurised edge of its end markets.
Chesterfield Special Cylinders, based in Sheffield in the UK, is a world-leading designer and manufacturer of highintegrity, safety-critical components and systems, including both standard and bespoke pressurised gas containment solutions, serving global supply chains in oil and gas, defence, industrial gases and hydrogen energy.
The company’s history spans over 125 years’ worth of develop ments that are not only fascinating but also integral to the company’s presently highly specialised engineering capabilities.
Forged amidst Victorian steam power Chesterfield Special Cylinders can trace its origins back to 1897 when Universal Steel Tubes Ltd was formed, occupying two acres of land in Chesterfield, and having 180 employees at its peak.
In its early years, it manufactured boiler and economiser tubes as well as cylinders for compressed gases and cold-drawn steam pipes for naval construction. Meanwhile, the company also pro duced shell forgings for the ongoing Boer War.
Nearly a decade later, Universal Steel Tubes became the Chesterfield Tube Company Ltd, established in December 1906. Its director at the time, Joe Trevorrow, produced the firm’s first drawings for seamless cylinder manufacture from hot pierced billet. This idea would go on to totally revolutionise the manufac turing process of such cylinders.
That would prove to be the first of many such innovations developed by the company which by the late 1930s, was enjoying increasing demand for its products. So much so that in 1939 the company celebrated the manufacture of its one-millionth cylinder.
Over the following decades, the organisation went through several name changes and various evolutions in terms of its manufacturing capabilities until 2004 when Chesterfield Special Cylinders, in its present form, emerged.
In 2005, Chesterfield Special Cylinders relocated from its original home in Chesterfield to its present location in Sheffield at a cost of £1.5 million. The move delivered a 100,000 sqft factory situated on 4.4 acres, vastly improving the company’s productivity and production capacity.
Public listing of Pressure Technologies plc on AIM in 2007 sig nalled the beginning of a new era that would see the company grow substantially through strategic acquisitions with the forma tion of its Precision Machined Components division.
The first was a 2010 acquisition of flow control component spe cialist Al-Met, forming the first member within the company’s new Precision Machined Components (PMC) division. Next was the acquisition of specialist machining service provider Roota Engineering in 2014, followed in 2017 by spherical ball valve grinding specialist Martract.
The capabilities of each site within the PMC division are highly specialist, as Shaun Newby, Sales Director for PMC highlighted: “These brands are leaders in their markets, with world-class lead t imes, specialised precision engineering skills and a blue-chip customer base.
“We pride ourselves on evolving alongside our customers’ needs and working closely in partnership with them on the development
of technical solutions for their specific end-product applications,” he continued. “These applications serve primarily the oil and gas market. We supply key components made from super alloys, manu factured to exacting standards and tolerances, and destined for extremely challenging environments like subsea oil exploration and wear parts for offshore and onshore oil production.”
Supporting safety Stephen Butler, Sales Director for Chesterfield Special Cylinders explained: “Our high-pressure cylinders are safety-critical compo nents for a number of applications, from high-pressure systems in n aval submarines and surface ships, to oxygen cylinders in aircraft.”
Of course, that list is far from the only uses for these cylinders, but it illustrates the critical nature of these products. The superior reliability and durability of steel cylinders is ensured through periodic inspection and maintenance.
In addition to the design and manufacturing of safety-critical pressure systems, Chesterfield Special Cylinders delivers highly specialised inspection, reconditioning and recertification services for its global customer base.
Integrity Management services can be deployed in situ for sys tems where cylinders cannot be easily or cost-effectively removed for periodic inspection and testing. These services are based on years of experience and the use of specialised equipment and inspection procedures that help maximise the availability of sys tems and support safe operations to demanding international standards standards that Chesterfield Special Cylinders also helped develop.
Inspection teams work all over the world and in a variety of operational environments to get the job done, according to Dan Nuttall, Inspection and Testing Services Manager for Chesterfield Special Cylinders: “Our Chesterfield team has carried out a number of challenging in situ inspections, including one example in which they conducted a complete inspection and test regime while a ship was crossing the Atlantic.”
The products produced by Chesterfield Special Cylinders are highly recyclable, being primarily made from high grade steel alloys. As Stephen Butler revealed: “Our products can be easily reconditioned, and their lives extended over many years. About 90% of the raw material we use is itself recycled.”
Though its products are highly recyclable, Chesterfield Special Cylinders’ other sustainability win is the ultra-long lifespan of its cylinders, according to Naval Programmes Director, Lee Lawrence: “The lifespan of our cylinders is a definite strength to our customers because with regular inspection and maintenance, the cylinders keep going for decades. Our Integrity Management service ensures through-life support for optimal longevity of the product.”
“We have cylinders that have been in service for 85 years for the storage of hydrogen,” Mr Butler said. “It’s a great testament to the longevity and reliability of our products, and it makes great commercial sense for our customers in terms of their total cost of ownership.”
Hydrogen is, of course, the focus of many energy sustainability efforts globally. Chesterfield Special Cylinders intends to continue innovating to remain at the forefront of providing static and mobile pressurised hydrogen storage long into the future.
“Hydrogen has been an important part of our business for over 85 years,” said Mr Butler, “and we are excited to see the rapidly growing demand for new hydrogen applications that require pres
surised storage. We understand the market and the importance of safe operations which is why we’re seen as the partner of choice by our customers.”
Chesterfield Special Cylinders provides complete ‘plug and go’ sys tems globally, supplying the entire solution including key elements such as cylinders, manifolds, valves, and through-life maintenance.
“This turnkey approach has served the company well because oil and gas majors, in particular, need a trusted partner to deliver a complete solution,” Mr Butler revealed. “A further factor is our strong presence in the global defence industry. Working with the sector’s prime contractors adds further credibility to the standards that we work to.
“We’re looking forward to the next four or five years, which we already know will be full of interesting opportunities,” he concluded. “That’s the excitement that keeps us positive for our future.” n
Connecting utilities and energy companies from across the United Arab Emirates with the world’s top suppliers of oil and gas industry products, services and solutions, is all in a day’s work for the team at Gulf Commercial Group Engineering Services (GCG Engineering Services).
Founded in 1982, the company has developed a formidable reputation in the Middle East for its diverse expertise and solutions. General Manager Nasir Sharif chatted to Richard Hagan about the company’s impressive reach within the industry.
Fromits centrally situated base in the energy industry hub of Abu Dhabi, GCG Engineering Services provides industrial solutions to the oil and gas industry as well as the defence, aviation and process manufacturing sectors.
All four of these industries are extremely fast-moving markets that are defined by their infinite pursuit of efficiency, value and time-saving. And just as its markets continue to evolve, so has GCG Engineering.
Following its establishment, GCG Engineering primarily focused on servicing the oil and gas industry. Over time the company gradually diversified through supplying systems and solutions first to the fuel industry and then into process automation and finally, digitisation.
The business also incrementally expanded its footprint from its Abu Dhabi base into Dubai, where it began supplying ADNOC in terms of a partnership with US manufacturer Honeywell. With its feet firmly in Dubai, the company evolved into supplying energy and utility companies, including the Dubai Water Authority and the Sharjah Water Authority.
Today, GCG Engineering Services’ offering can be broadly categorised into two verticals: products, and solutions, which it supplies to all of the upstream, midstream and downstream mar kets as well as to the energy and utility markets.
Whilst the oil and gas industry in the region looks forward to the commencement of several planned energy megaprojects, GCG Engineering’s core market is mid-size EPCs.
“We see high potential and great opportunities in this segment,” highlighted General Manager Nasir Sharif. “We’ve finalised local deals in the mid-tier, mid-segment. We’re also involved in some mega projects but those are still in the initial bidding phase, so it can take some time. With the currently high oil price, there are lots of uncertainties.”
Outside of new build projects, GCG Engineering also participates in the maintenance and refit market. “That segment is going very well,” revealed Mr Sharif. Meanwhile, the company has expanded into Iraq where it has either already completed (or is in the pro cess of) completing several projects.
GCG Engineering’s head office is in Abu Dhabi. It’s a facility that the company has developed into its innovation centre.
“It acts as a test bench and training centre for our customers, which is why we call it an innovation centre,” Mr Sharif explained. “Its facilities are specifically aimed at oil and gas, water utilities, field side instrumentation and industrial automation. We proudly show it off to our customers. Aside from being a marketing and training asset, we also supply innovation courses from within it to local universities as part of our social outreach programme.”
The company employs a total of 100 people, and of those, its engi neering department is a particular ace up its sleeve. “Our in-house engineering is our core competency and capability,” he affirmed.
Thanks to those sophisticated engineering capabilities, GCG Engineering has been able to deliver heavily on digital transforma tion demands within the industry to the extent that digitalisation has become one of its most popular services.
As recently as 2022, the company was demonstrating the capabil ities of its digitalisation teams with a digital transformation project for ADNOC LNG.
“We are providing ADNOC LNG with project management, anal ysis, modelling, system integration and other services,” Mr Sharif detailed. “ADNOC has three LNG trains that we’re working on, and we’re also participating on some ADNOC projects outside of the oil and gas segment.”
In a particular highlight, GCG Engineering Services is a regional partner with Honeywell and Siemens for automation solutions for the region. “We’re accepted as a leading digitisation contractor,” said Mr Sharif. “We’ve already begun doing these kinds of projects with ADNOC and others.”
Separately in 2022, the company delivered a set of sophisticated heat exchangers to Emirates Steel.
It was also marketing a flare monitoring solution with multina tional partner Fluenta. This system currently has the largest market share in the UAE and monitors flares for harmful gases. “It’s an area of high potential for us, we’re already seeing lots of orders for air monitoring solutions,” he noted.
Moreover, the company has recently branched into providing tank gauging systems for oil tanks in storage terminals.
“In all of these projects, we provided turnkey solutions, from engineering, design and manufacturing through to supply and installation,” confirmed Mr Sharif. “Being a local company,
we differentiate ourselves through our design, engineering and project management capabilities, supplying support for industry levels one to five.”
GCG Engineering Services counts a global network of high-profile, well-known industry suppliers as part of its vendor portfolio, and as Mr Sharif pointed out, these partners are very popular in the Middle East.
“Our vendor partners are from the United States, Europe and several other locations,” he said. “There is high demand for their products across the Middle East, especially for the systems pro duced in the United States. That’s particularly true of industrial companies in the oil and gas segment, who prefer US-made prod ucts for their high quality.
“However, there is huge competition developing out of Asia –especially India and China,” he continued. “Whilst Western com panies have very strong demand and a strong market position in the UAE, we are starting to see similarly strong representation from Asian companies who are particularly well represented in energy, utilities and water. Fortunately, we have a diversified portfolio so for us, the competition is good and it’s simply an opportunity for us to bring all of those companies on board as partners and suppliers.”
While GCG Engineering Services continues to see healthy demand for imported components, it still places a special focus on delivering locally produced products, a category it calls ‘incountry’ value. This valuable support helps local companies who have made substantial local investments to also reap the rewards of the value they’ve developed in-country.
Despite global shortages of electronics and electronic compo nents, the company has thus far largely managed to mitigate supply chain delays through intelligent stockholding.
“We started stocking much more material through pre-orders,” Mr Sharif revealed. “We anticipated the orders that we expected for coming quarters and that stock allowed us to meet the delivery expectations of our customers. Raw material price fluctuations continue to be a challenge as well, but that’s something we’re also managing through our stocking arrangements.”
As part of its continued efforts to grow its networks, the company participates annually in ADIPEC in Abu Dhabi. “We showcase our new products and any projects we’ve completed that year,” said Mr Sharif. “We participate on an annual basis every November when the expo takes place. We are especially looking for opportu nities to expand our operations in the region from our centre of excellence in Abu Dhabi.”
Meanwhile, the company has adopted a number of sustain ability initiatives to reduce its environmental impact. In 2022, its biggest milestone in this regard was the elimination of the majority of physical paperwork throughout its operations, including digital approvals and the introduction of digital ERP and CRM for financial reporting.
Organisationally, the company has a number of training, men toring and coaching programmes in place to identify, nurture and raise up its best talent, all as part of its efforts to ensure the sustainability of the organisation itself.
Going forward, and outside of its already mentioned plans to continue its growth in Iraq, GCG Engineering Services also has firm plans to expand into Saudi Arabia where it will be opening an office that will become an extension of its presence elsewhere. With a strong digitalisation portfolio, a catalogue of highly rep utable vendor relationships and a formidable reputation across the region, GCG Engineering looks set to deliver an outstanding future for its customers and stakeholders. n
DHSS has 25 years’ experience delivering high-quality vessel agency services, 3PL warehousing and helicopter logistics to the offshore energy sector. CEO Wim Schouwenaar described the ongoing growth of DHSS and the plans to expand beyond the North Sea area in conversation with Phil Nicholls.
Dutch company DHSS is experiencing a surge in business as the offshore wind industry grows steadily around the North Sea. Alongside this consistent expansion, DHSS also announced a new partnership with Marine Coordination Services (MCS) to further unburden clients in the offshore wind industry.
“We joined with MCS because they will provide added value to our services,” explained CEO Wim Schouwenaar. “DHSS already has a helicopter coordination centre, so if we combine that with marine coordination, then we can offer the whole package.”
DHSS was established in 1997 at the port of Den Helder in the province of North Holland. The company quickly expanded with a branch office at Den Helder Airport, before a warehousing hub in Den Helder became operational in 2014. In 2017, DHSS added agency offices in the ports of Eemshaven and IJmuiden, steadily growing these facilities ever since.
Today, DHSS operates those three sites around Den Helder, an agency office and support base in Ijmuiden and an office in Eemshaven. The company currently employs 65 people, but this is a fluid number as DHSS is in a period of rapid growth.
The company offers a wide range of support for the offshore energy industry. “We deliver the full package of services when it comes to the logistics of people and cargo,” Mr Schouwenaar said. “This may involve service operation vessels, installation vessels or crew tender vessels. DHSS has the added value of also being involved in helicopter operations.”
In conjunction with these helicopter services flying out cargo and crew, DHSS provides a package of port logistics and vessel agency ser vices. The company operates a 3PL warehouse management system including both bonded and external storage, an efficient stock control system and temperature-controlled storage for critical components. DHSS also facilitates customs formalities, support base operations, freight forwarding and procurement management.
For a company with such a diverse portfolio of services as DHSS, picking out a single project to represent the company’s abilities is a challenge. That said, Mr Schouwenaar chose to highlight the complex Crosswind subsidy-free offshore wind venture.
“Hollandse Kust Noord is a wind farm operated by Crosswind, a partnership between Shell and Eneco, supported by the Dutch contractor Van Oord. The logistics are complex with the founda tions coming from the SIF terminal in Rotterdam, the turbines from Eemshaven; the commissioning of the turbines is by Siemens at IJmuiden and possible helicopter operations are at Den Helder airport.”
Of these four Crosswind ports, DHSS is the only company situated in three of them, meaning DHSS can coordinate the movements of both the project’s vessels and helicopters.
“This combination is beneficial for a client because, for example, helicopter operations have limited payloads,” said Mr Schouwenaar.
“If the helicopter is overloaded, then we can leave behind some lug gage or a passenger to ship out later on a crew tender vessel. DHSS can easily adjust these combined logistics without having our clients delayed.”
DHSS is heavily involved in the transition into the renewables industry in the Dutch sector and projects in the wider North Sea region. Alongside Hollandse Kust Noord, the company is involved in the Hollandse Kust Zuid wind farm with both port and helicopter logistics, plus agency services for the cable vessels. In total, DHSS has assisted in the construction of over 1,000 wind turbines, pro ducing 9,500 MW of renewable power to 12.7 million households.
The flexibility and breadth of DHSS, services sets the company apart from the competition. The foundation of DHSS is its five value propo sitions. As a family company, DHSS cares about its workforce and invests in training and personal development. In turn, this ensures a high level of service execution in accordance with industry stan dards and regional regulatory requirements. Thirdly, these operating procedures are reinforced by the company’s commitment to an inci dent-free working environment with minimal HSE risks.
QHSE is moulded in the company via ISO 9001, 14001 and 45001 certifications. Quality assurance is the foundation of the DHSS busi ness model, providing governance through policies, procedures and work instructions. Most of all, the staff are the company’s most valuable asset. The DHSS work method statements give staff the guidelines for awareness in all facets of the company.
Furthermore, DHSS is strategically located at key locations around the Netherlands to support the offshore energy industry. Finally, the experienced DHSS team is dedicated to going above and beyond every client’s expectations to provide excellent ser vice across its full portfolio of services.
By operating according to these five core values, DHSS forges close relationships with its partners. The company often operates as a mid dleman, dealing with anything up to 40 different suppliers so that the client does not need to juggle so many purchasing agreements.
“We work together with all kinds of stakeholders and supply chain companies. We have a long-term relationship with many of them like, for example, Lubbers Logistics Group,” Mr Schouwenaar said. “Strengthening each other by making use of the expertise both parties have in-house.
“Every day is different in the offshore energy business, and the same goes for the oil and gas sector. Being able to adapt to these some times ad hoc changing circumstances adequately is in our DNA”.
As part of the steady growth of DHSS, the company forms close partnerships with companies to help fulfil a clients’ needs. The new partnership with Marine Coordination Services will facilitate this expansion.
Another new development for DHSS was the RWE contract announced earlier in 2022. DHSS provides vessel agency, port logistics and storage services managed from its support base in Eemshaven. RWE will install 38 wind turbines in the Kaskasi offshore wind farm in German waters, 35 km north of the island of Heligoland.
As to be expected of a company heavily involved in the sustain able energy sector, DHSS has taken steps to reduce its own carbon footprint.
“We have various electrical forklifts,” explained Mr Schouwenaar. “We also run electrical vans and cars. Our sites have solar panels on the roof, and we implement CO2 monitoring so that we can track and make visible what we use and have a better idea about how to reduce our consumption.”
For any company growing steadily, there are always chal lenges. Mr Schouwenaar identified the difficulty of finding sufficient qualified employees: “DHSS is still growing, with
vacancies at several locations, from operational to administra tion. We need to widen the organisation on all levels, but so far, we are managing well.”
The biggest issue we currently face is within the customs department, so for now we train new staff ourselves, which takes about a year.”
DHSS is firmly established within its network of partners in the Netherlands and around the North Sea. However, the future of DHSS lies further afield.
“Our focus for 2023 is on expanding the business into the US market,” concluded Mr Schouwenaar. “Developers with contracts in the US are often the same European companies we already work with. So, our existing clients are asking us to follow them across the Atlantic because they know the quality of service we deliver and they want that same quality in America as well.” n
DHSS
